cut flowers

CENTRE FOR THE PROMOTION OF IMPORTS FROM DEVELOPING COUNTRIES

CUT FLOWERSAND FOLIAGE

EU MARKET SURVEY 2003

EU MARKET SURVEY

CUT FLOWERS AND FOLIAGE

Compiled for CBI by:

ProFoundAdvisers in Development

in collaboration withProVerde - Trade Strategies

and J. Lanning

October 2003

DISCLAIMERThe information provided in this market survey is believed to be accurate at the time of writing. It is, however, passedon to the reader without any responsibility on the part of CBI or the authors and it does not release the reader from theobligation to comply with all applicable legislation.

Neither CBI nor the authors of this publication make any warranty, expressed or implied, concerning the accuracy ofthe information presented, and will not be liable for injury or claims pertaining to the use of this publication or theinformation contained therein.

No obligation is assumed for updating or amending this publication for any reason, be it new or contrary informationor changes in legislation, regulations or jurisdiction.

Update of ‘EU Market Survey Cut Flowers and Foliage’ (2002) and ‘EU Strategic Marketing Guide Cut Flowers andFoliage’ (2000).

TABLE OF CONTENTSREPORT SUMMARY 7

INTRODUCTION 9

PART A: EU MARKET INFORMATION AND MARKET ACCESS REQUIREMENTS

1 PRODUCT CHARACTERISTICS 131.1 Product groups 131.2 Customs/Statistical Product Classification 13

2 INTRODUCTION TO THE EU MARKET 15

3 CONSUMPTION 173.1 Market size 173.2 Market segmentation 173.3 Consumption patterns and trends 18

4 PRODUCTION 21

5 IMPORTS 265.1 Total imports 265.2 Imports by product group 365.3 The role of the developing countries 42

6 EXPORTS 46

7 TRADE STRUCTURE 497.1 EU trade channels for developing countries 49 7.2 Wholesale level 51 7.3 Retail level 52

8 PRICES 558.1 Price developments 558.2 Sources of price information 55

9 EU MARKET ACCESS REQUIREMENTS 579.1 Non-tariff trade barriers 57

9.1.1 Relevant legislative requirements 579.1.2 Quality and grading standards 609.1.3 Trade related environmental, social and health & safety issues 619.1.4 Packaging and marking 63

9.2 Tariffs and quotas 63

PART B: EXPORT MARKETING GUIDELINES: ANALYSIS AND STRATEGY

10 EXTERNAL ANALYSIS: MARKET AUDIT 7010.1 Market developments and opportunities 7010.2 Competitive analysis 7210.3 Sales channel assessment 7210.4 Logistics 7310.5 Price structure 7410.6 Product profiles 75

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11 INTERNAL ANALYSIS: COMPANY AUDIT 7811.1 Product range 7811.2 Product standards, quality, and production capacity 7811.3 Logistics 8011.4 Marketing and sales 8111.5 Financing 8111.6 Capabilities 82

12 DECISION MAKING 8312.1 SWOT and situation analysis 8412.2 Strategic options and objectives 85

13 EXPORT MARKETING 8713.1 Matching products and the product range 8713.2 Building up a relationship with a suitable trade partner 8713.3 Drawing up an offer 8813.4 Handling the contract 8913.5 Sales promotion 91

APPENDICES 93

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REPORT SUMMARY

This survey focuses on the market for cut flowers andfoliage in the European Union. The main reason for thisaggregation of the two product groups lies in the factthat the market and marketing channels for cut flowersand foliage for ornamental purposes are very similar.The primary usage of foliage is for bouquets, incombination with fresh or prepared cut flowers.

In this survey, the focus is on the assortment ofimported fresh cut flowers relevant to exporters indeveloping countries. Certain species of cut flowers andfoliage are highlighted (such as Rosa, Dianthus,Dendranthema, Orchids, etc.). However, not all cutflowers are sold as freshly picked products. A relativelysmall proportion of about 5 percent has in some waybeen prepared. Drying and dyeing, in particular, arepreparations that cut flowers can undergo. Other waysof preparing are bleaching or impregnating the flowers.

ConsumptionThe European Union is believed to consume over 50percent of the world’s flowers and includes manycountries with a relatively high per capita consumptionof cut flowers. Although some of the larger EU marketslike Germany, France and The Netherlands show signsof saturation, overall EU consumer sales of cut flowersare still increasing incessantly. Germany is the biggestconsumer of flowers, followed by the UK, France andItaly.

European consumers buy flowers for different purposes.The main purpose of purchase is to give them away as agift, representing about 40 to 50 percent of Europeanconsumer spending. Another 20 to 30 percent of theflowers is bought for special occasions like weddingsand funerals. The remaining 20 to 25 percent is spenton flowers for decoration of their own home.

By far the most important cut flower sold in Europe isRosa, followed at a distance by other flowers likeDendranthema, Dianthus, Tulipa, Lilium, Gerbera, etc.

ProductionThe Netherlands is the leading producer with an outputvalued at about € 2 billion. Germany and Francefollowed in order of importance.

In the production countries in North Europe (The Netherlands, Germany and Denmark), thefollowing main production trends can be recognised:• Production area is slowly declining;• Number of growers is decreasing; and • Total production is stable.This shows that the average cultivated area percompany and output per hectare is increasing.

Hence, scale-enlargement and an increase inproductivity have taken place.

In the main production regions around theMediterranean (Spain, Italy and Portugal), bothproduction area and output are slightly increasing.

ImportsThe EU, is the world’s leading importer of cut flowersand foliage with total imports amounting to about € 3billion in 2001, which indicates a steady increase of 7percent compared to 1999. Germany was the largest EUimporter of cut flowers and foliage, mainly importingfrom The Netherlands. However, regarding extra-EUimports, The Netherlands was the leading importer,accounting for 57 percent of all cut flowers and foliageimported from outside the EU. In terms of volume, thatshare of The Netherlands is even larger, namely 63percent.

The Netherlands constitutes the major market fordeveloping countries because of its massive trading rolein distributing imported flowers throughout Europe. The importance of developing countries as suppliers tothe EU is demonstrated by the presence of Kenya,Colombia, Ecuador, Zimbabwe, Thailand, Zambia,India, South Africa, Turkey, Tanzania and Ugandaamong the top fifteen supplying countries.

Imports originating in developing countries have beenincreasing strongly over the past ten to fifteen years. In 2001, imports from developing countries amountedto € 575 million, accounting for 19 percent of the totalEU imports of cut flowers and foliage. Developing countries played a more important role inthe Netherlands imports than in the imports of other EU countries, illustrating The Netherlands’ gatewayfunction to the European market for imports fromdeveloping countries.

ExportsEuropean Union exports amounted to almost € 2.6billion in 2001, of which € 2.2 billion was exported andre-exported by The Netherlands alone.

Trade channelsGrowers and traders exporting cut flowers and foliageto the EU send their merchandise either to a wholesaleror to an auction. In this respect, Netherlands auctionsplay a pivotal role in the trade of flowers destined forboth the domestic and other European markets.Products handled by agents and import wholesalers, areeither sold directly to a wholesale buyer or aresubmitted for auction. Export wholesalers re-export theproducts to other EU member countries, where the

flowers and foliage find their way to wholesalers andretailers.

Developments at retail level show a slowly decreasingmarket share of traditional outlets like specialisedflower shops and street and market stalls. Nevertheless,although retail chains sell more and more flowers, about50-55 percent of flower purchases is still made atspecialised flower shops (florists). It is estimated thatretail chains have a market share of about 20 percent,the rest is bought at other places like street vendors andgas stations. Please note that shares of retail outletsvary strongly among different member states.

Opportunities for developing countriesThe market for cut flowers consists of a range ofproduct groups, which offer varying opportunities fordeveloping countries as potential suppliers. It is ahighly competitive market in which importers arecontinually seeking new, special and different products.They tend not to change easily from one rose supplierto another, but co-operation with a company supplyinga new product is considered attractive. The market isclearly searching for these kinds of novelties to takeover some of the market from the species preponderantat present. A new product also offers the prospect ofmaking higher profits than those gained from sellingconventional floricultural products.

Demand for different foliage varieties is still increasingin Europe, particularly for small-leafed foliage for usein cheap bouquets. Furthermore, European importers donot have any reticence about using tropical foliage.

Another opportunity exists in supplying products duringperiods when these products are scarce on the market.

In order to compete, developing country exporters mustbe able to supply products of consistent quality and ona regular basis. At times, this implies that they will haveto accept prices that are lower than those in TheNetherlands and other European markets. Unless exporters maintain a regular supply to the EUmarket, even during periods of low prices, they will notsucceed in developing a sustainable market in the EU.The new entrant to the EU market must recognise thatcompetition from the often long-established suppliers isintense.

CBI servicesFor information on current CBI programmes andtraining & seminars, and for downloading marketinformation and CBI News Bulletins, please refer towww.cbi.nl. Currently, CBI has an export promotionprogramme which seeks to support flower exporters inEast and Southern Africa by helping them to improvetheir export performance on the EU market in close co-operation and consultation with business support

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organisations. For full details on the programme andapplication forms, please refer to the project documentwhich can be downloaded at the CBI Internet site:http://www.cbi.nl.

INTRODUCTION

This CBI survey consists of two parts: EU MarketInformation and EU Market Access Requirements (Part A), and Export Marketing Guidelines (Part B).

Chapters 1 to 8 of Part A profile the EU market for cutflowers and foliage. The emphasis of the survey lies onthose products, which are of importance to developingcountry suppliers. The major national markets withinthe EU for those products are highlighted. The surveyincludes contact details of trade associations and otherrelevant organisations. Furthermore statistical marketinformation on consumption, production and trade, and

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information on trade structure and opportunities forexporters is provided.

Chapter 9 subsequently describes the requirementswhich have to be fulfilled in order to get market accessfor the product sector concerned. It is furthermore ofvital importance that exporters comply with therequirements of the EU market in terms of product

EU Market Information(Chapters 1-8)

Product characteristicsIntroduction to the EU marketConsumption and production

Imports and exportsTrade structure

Prices

EU Market Access Requirements(Chapter 9)

Quality and grading standardsEnvironmental, social and health & safety issues

Packaging, marking and labellingTariffs and quotas

Part BExport Marketing Guidelines: Analysis and Strategy

External Analysis (market audit)(Chapter 10)

Opportunities & Threats

Internal Analysis (company audit)(Chapter 11)

Strengths & Weaknesses

Decision Making(Chapter 12)

SWOT and situation analysis:Target markets and segments

Positioning and improving competitivenessSuitable trade channels and business partners

Critical conditions and success factors (other than mentioned)

Strategic options & objectives

Export Marketing(Chapter 13)

Matching products and product rangeBuilding up a trade relationship

Drawing up an offerHandling the contract

Sales promotion

Market Survey

Part AEU Market Information and Market Access Requirements

quality, packaging, labelling and social, health & safetyand environmental standards.

After having read Part A, it is important for an exporterto analyse target markets, sales channels and potentialcustomers in order to formulate export marketing andproduct strategies. Part B therefore aims to assist(potential) exporters from developing countries in theirexport-decision making process.

After having assessed the external (Chapter 10) andinternal environment (Chapter 11), the (potential)exporter should be able to determine whether there areinteresting export markets for his company. In fact, by matching external opportunities and internalcapabilities, the exporter should be able to identifysuitable target countries, market segments and targetproduct(s) within these countries, and possible tradechannels to export the selected products (Chapter 12).

The subjects and outcomes of the different paragraphsof Chapter 13 can be used as input for the Market EntryStrategy and Export Marketing Plan.

The survey is interesting for both starting exporters aswell as well as exporters already engaged in exporting(to the EU market). Part B is especially interesting formore experienced exporters starting to export to the EUand exporters looking for new EU markets, saleschannels or customers. Starting exporters are advised toread this publication together with the CBI’s Exportplanner, a guide that shows systematically how to set upexport activities.

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Part AEU market information and market access requirements

A

1.1 Product groups

This market survey focuses on the market for cutflowers and foliage in the EU. The reason for theaggregation of the two product groups lies in the factthat the market and marketing channels for cut flowersand foliage, in particular for ornamental purposes, arethe same. The main usage of foliage is for bouquets, incombination with fresh or prepared cut flowers.

In this market survey, the focus is on the assortment ofimported fresh cut flowers relevant to exporters fromdeveloping countries. The overview below highlightsthe product groups and species within these productgroups:

It is a problem that names of the flowers can beconfused because the “trade” does not always use theofficial product names. The official name forChrysanthemum, for instance, is Dendranthema, andthe official name for Carnation is Dianthus. For thesake of clarity, this survey uses the official names.

1.2 Customs/statistical product classification

On January 1, 1988, a unified coding system wasintroduced to harmonise the trading classificationsystems used world-wide. This system is called theHarmonised Commodity Description System (HS) andwas developed by the World Customs Organisation

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1 PRODUCT CHARACTERISTICS

Cut flowers

Fresh cut flowers

General Rosa (Rose)Dendranthema (Chrysanthemum)Dianthus (Carnation)Orchids (Orchids): Phalaenopsis, Cymbidium, Oncidium, PaphiopedilumGladiolus (Gladioli)AnthuriumSummer flowers: Solidaster, Eryngium, Limonium, Carthamus, etc.Other fresh cut flowers

Bulb flowers Tulipa FreesiasLiliumIrisNarcissusOther bulb flowers

Summer flowers SolidasterEryngiumLimoniumCarthamusOther summer flowers

Prepared cut flowers

Various cut flower species

Foliage

Cut foliage of EucalyptusArachniodesAsparagusOther species

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(WCO). The system comprises about 5,000 commoditygroups, each identified by a six digit code, arranged ina legal and logical structure and is supported by well-defined rules to achieve uniform classification. Thesystem is used by more than 177 countries andeconomies as a basis for their Customs tariffs and forthe collection of international trade statistics. WCO iscurrently introducing alterations to the HS and thesewere scheduled to be included in the combinednomenclature as of January 1, 2002. After the six-digitcode, countries are free to use further subheadings. An8-digit system is used in the trade data of Eurostat.Most codes, however, end with two zeros, i.e.effectively only using 6 digits. In some countries even10 digits are occasionally used.

Table 1.1 gives a list of the eight-digit list of the maingroups of HS codes for cut flowers and foliage.

As stated in Section 1.1, emphasis will be put onspecific cut flower types. Some of these products suchas Anthurium and Gypsophila are not furtherdistinguished by the HS code classification and areaggregated under the codes 0603.10.29 and 0603.10.69.The group under code 0603.90.00 consists of dried,dyed, bleached, impregnated or otherwise prepared cutflowers.

Please note that previously, each type of fresh cutflower had two codes, one for the winter period ofNovember to May, and the other for the summer periodJune to October. Since 2000 however, the two codeshave been combined.

Table 1.1 HS code classification of cut flowers and foliage

0603 Cut flowers and flower buds of a kind suitable for bouquets or for ornamental purposes,fresh, dried, dyed, bleached, impregnated or otherwise prepared

0603 10 Fresh cut flowers:0603 10 10 Rosa0603 10 20 Dianthus0603 10 30 Orchids0603 10 40 Gladiolus0603 10 50 Dendranthema0603 10 80 Other fresh cut flowers

0603 90 00 Prepared cut flowers

0604 99 Foliage, other than mosses, lichens, and parts of Christmas trees0604 99 10 Not further prepared than dried0604 99 90 Other

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2 INTRODUCTION TO THE EU MARKET

The European Union (EU) is the current name for theformer European Community. Since 1 January 1995 theEU has consisted of 15 member states. Ten newcountries (Cyprus, Malta, Hungary, Poland, Slovakia,Latvia, Estonia, Lithuania, Czech Republic andSlovenia) will join the European Union in 2004.Negotiations are in progress with a number of othercandidate member states.

In 2002, the size of the EU population amounted 379.4million; the average GDP per capita amounted toapproximately € 21,023 in 2002.

Within Western Europe – covering 15 EU membercountries, Iceland, Liechtenstein, Norway andSwitzerland – more than 20 million enterprises areactive. Small and medium-sized enterprises (SMEs)accounted for the lion’s share. In 2000, the averageturnover per enterprise of SMEs and large enterprisesamounted to € 600 thousand and € 255 millionrespectively.

EU Harmonisation The most important aspect of the process of unification(of the former EC countries), which affects trade, is theharmonisation of rules in the EU countries. As theunification allows free movement of capital, goods,services and people, the internal borders have beenremoved. Goods produced or imported into onemember state can be moved around between the othermember states without restrictions. A precondition forthis free movement is uniformity in the rules andregulations concerning locally produced or importedproducts. Although the European Union is already afact, not all the regulations have yet been harmonised.

Work is in progress in the fields of environmentalpollution, health, safety, quality and education. For more information about harmonisation of theregulations visit AccessGuide, CBI’s database on non-tariff trade barriers at www.cbi.nl/accessguide

Monetary unit: EuroOn 1 January 1999, the Euro became the legal currencywithin eleven EU member states: Austria, Belgium,Finland, France, Germany, Italy, Ireland, Luxembourg,The Netherlands, Spain, and Portugal. Greece becamethe 12th member state to adopt the Euro on January 1,2001. In 2002 circulation of Euro coins and banknotesreplaced national currency in these countries. Denmark,United Kingdom and Sweden have so far decided not toparticipate in the Euro.

The most recent Eurostat trade statistics quoted in thissurvey are from the year 2001. In this market survey, theeuro/€ is the basic currency unit used to indicate value.

Trade figures quoted in this survey must be interpretedand used with extreme caution. The collection of dataregarding trade flows has become more difficult sincethe establishment of the single market on 1 January1993. Until that date, trade was registered by means ofcompulsory customs procedures at border crossings,but, since the removal of the intra-EU borders, this is nolonger the case. Statistical bodies like Eurostat cannotnow depend on the automatic generation of tradefigures. In the case of intra-EU trade, statisticalreporting is only compulsory for exporting andimporting firms whose trade exceeds a certain annualvalue. The threshold varies considerably from countryto country, but it is typically about € 100,000. As a

Overview 15 EU countries, 2002

Population 379.4 million

Area 31,443,000 km2

Density 83 people per km2

Languages 15 (excl. dialects)

GDP/capita € 21,023

Currencies €, UK£, DKr., SKr.

Exchange € 1 = US$ 0.99

Source: The World Factbook 2002

Population and GDP of selected EU countries, 2002

Countries/category Population Age GDP15-64 (2 billion)

Germany 83.3 million 68% 2,206

France 59.8 million 65% 1,556

UK 59.8 million 66% 1,485

Italy 57.7 million 67% 1,416

Spain 40.1 million 68% 836

The Netherlands 16.0 million 68% 417

Source: The World Factbook 2002

consequence, although figures for trade between the EUand the rest of the world are accurately represented,trade within the EU is generally underestimated.Furthermore, the information used in this market surveyis obtained from a variety of different sources.Therefore, extreme care must be taken in the qualitativeuse and interpretation of quantitative data, both in thesummary and throughout the text, as well as incomparisons of different EU countries with regard tomarket approach, distribution structure, etc.

For more information on the EU market, please refer tothe CBI’s manual “Exporting to the European Union”.

The survey focuses on the 6 major EU markets for cutflowers and foliage. These are Germany, the UnitedKingdom, France, The Netherlands, Italy and Spain.These EU member countries will be highlighted,because of their relative importance in terms ofconsumption, production, imports and exports.

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3 CONSUMPTION

3.1 Market size

The European Union (EU) is believed to consume over50 percent of the world’s flowers and includes manycountries with a relatively high per capita consumptionof cut flowers. Germany is the biggest consumer,followed by the UK, France and Italy in order ofimportance. In some of the larger European markets,including Germany, France and The Netherlands,consumption has been stagnant or declining over thepast five to ten years.

Per capita consumption is highest in The Netherlands,followed at a distance by other countries like Belgiumand Austria.

Because of their large market share in total Europeanconsumption, the Netherlands auctions can be used asan indicator for the best sold cut flower species in theEU. Table 3.2 shows the top 10 cut flower species soldin 2002. Rosa is by far the most important cut flowertraded at the Netherlands auctions, followed byDendranthema, Tulipa and Lilium.

3.2 Market segmentation

Flowers are bought by many different types of peoplefor different purposes in EU countries. Consumptionpatterns of buyers living in different member states are

varied. Yet, it is possible to draw up a model of themain common features of EU consumers.

It is important to bear in mind that the consumptionpatterns described above are highly generalised.Consumers in the various EU member states are verydiverse. The most important characteristics of theindividual EU consumer markets are given in Section 3.3.

Segmentation by purpose of purchasing1) Gifts and special occasionsThe purpose of purchasing flowers is mostly to givethem away as a gift (40-50 percent). Another 20 to 30percent is bought for special occasions and 20 to 25percent is used for decoration at home. Sixty percent offlower purchases are made at florists, the rest is boughtat other places like street vendors and supermarkets.

The main products competing with flowers arechocolates, jewellery and wine, as these tend to bebought for the same purposes. If the price of flowers isrelatively too high, or if flowers are of poor quality,consumers tend to switch to these competing products.The Flower Council of Holland reports that the criteriafor purchasing flowers are mainly quality (36%), price(13%), the species flowers used in bouquets (13%) andthe colour of flowers (10%).

Symbol of emotionThe European consumer does not consider a flower as

Table 3.1 EU consumption of cut flowers and foliage (€ million)

total per capita year

Germany 3,108 38 2000UK 2,240 37 2001France 1,995 33 2002Italy 1,905 34 2001Spain 776 19 2002The Netherlands 956 60 2001Belgium 449 44 2002Austria 355 44 2001Sweden 301 34 2001Denmark 205 39 2001Finland 185 36 2001Greece 152 14 2001Portugal 161 16 2001Ireland 108 28 2001

Source: Flower Council of Holland (2003)

Table 3.2 Top 10 cut flowers species sold at the Netherlands auctions, 1999-2001(€ million)

% change2002 2001-2002

Rosa 700 +7.2Dendranthema 307 +6.2Tulipa 171 -3.4Lilium 168 +7.8Gerbera 108 +3.7Cymbidium 66 -0.6Freesia 62 +0.5Dianthus 45 -19.1Alstroemeria 44 -0.3Anthurium 41 +11.2

Total 2.394

Source: VBN (2003)

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just an ordinary gift; it also symbolises emotion andfeeling and flowers can deliver a message of emotion.The reason for a gift can be congratulations (birthday),an apology (argument, awkwardness), a commiserationwith someone’s grief (death, accident), or a sign of loveor affection for someone (Valentine’s Day).

Public holidaysPublic holidays have an important influence on thedemand for cut flowers and foliage. At time ofValentine’s Day, Christmas, Mother’s Day, andSecretary’s Day there are substantial peaks in flowersales. Beside the internationally well-known holidays,most countries have their own special holidays.Appendix 6 lists the main European public holidays.

2) Own useThe second purpose why consumers buy flowers is forhis or her own use. This is often with the intention ofbrightening up the home and creating a pleasantenvironment. The same purpose applies for companies(businesses, restaurants, hotels, etc.) buying flowers todecorate and brighten up their offices, lobbies orrestaurants.

Segmentation by buyersWomen vs. menTypically the person who buys flowers will be a womanof older than 45 years of age, living in an urbanagglomeration where there are medium to high incomes.80 percent of flowers purchased in European countriesis bought by stem, the rest is in ready made bouquets.

Young people vs. older peopleThe sales of cut flowers to young people not older than30 years of age is decreasing. The reasons could befound in the following:• Young households are mainly couples both working

and therefore less at home. As a consequence, theyhave less opportunity and time to purchase flowers.Furthermore, they buy fewer flowers because theycannot enjoy the flowers since they are not homeoften.

• Households with young children due to practicalreasons (for example vases being knocked over) donot buy flowers often.

• Young people attach less emotional value to flowersthan older people.

Institutional market vs. consumer marketCompanies also purchase flowers to decorate andbrightening up offices. The non-profit sector and thecommercial services sector are major consumers offlowers, accounting for 50 percent of all flowers boughtby the small and medium-sized enterprises. About 89percent of the companies purchases flowers to givethem away as birthday and anniversary presents.

3.3 Consumption patterns and trends

Consumer preferences and patterns can differ stronglybetween countries. Purchasing patterns even differwithin countries by geographical region and incomestrata: affluent people buy more bouquets with“special” flowers; less affluent people buy simplebunches of flowers. Even colour preferences vary.Nevertheless, there are a few characteristics that areapplicable to most European consumers.

European consumers expect flowers to be colourful andbeautiful. The emotional element is important.Furthermore, the quality expected by consumers isgenerally very high. They expect not only freshness at themoment of purchase, but also a long vase life. The priceis not the main criterion, but is of course, of importance.Last, but not least, the scent of the flowers is valued.

For years, cut flowers in fashionable colours and flowerforms have been priced higher than the average crop.The traditional primary colours of red, yellow, white,and blue always enjoy a certain demand, but the ever-changing fashions in interior decor set the trends.30 percent to 70 percent of consumers demand thatcolour tones be combined in harmonious or contrastingarrangements, with decorative pots or wrappings.

Representativeprofessional 28%

Brighten up room 39%

For the healthof employees 1%

Other 2%

Stimulate thecreativity ofemployees

3%

Decoration27%

Figure 3.1 Major purpose for purchasing flowersby companies, 2000

Source: Flower Council of Holland

Some meanings and messages signified by flowers:• Rosa love• Gladiolus I would like to go out with you• Lilium purity• Dianthus fancy, misfortune• Viola forget me not• Jasminum sensuality

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The most important characteristics of the individual EUconsumer markets for flowers and foliage, according tothe Flower Council of Holland, are described below.

Germany• Sales in Europe’s largest market, Germany, have

been stabilising for a few years, and are now evenshowing signs of saturation.

• The average German consumer is very demandingand health-, environmental- and cost-conscious.

• About 63 percent of the German population buys cutflowers, of which 42 percent is accounted for bymono-bunches and 30 percent bouquets.

• Within mono-bunches, Rosa is the leading cut flowerpurchased. Dianthus, Tulipa, Orchids, andDendranthema follow in order of importance.

• 58 percent of the flowers bought is to give away aspresents, 23 percent for memorial and 18 percent forown use.

• Flowers are associated with special occasions, natureand a sign of affection and love.

• The decorative characteristics of flowers are mainlyappreciated by women. Young people and men relateflowers primarily to the giving of a present.

• Flowers and bouquets which are purchased to giveaway as present are mainly bought at florists.

UK• Since 1995, the UK consumption of cut flowers and

foliage has more than doubled. • The percentage of buyers of flowers showed increases

from 39 percent in 1999 to 46 percent in 2001.• About 43 percent of flowers bought is to give away

as a present, and 12 percent is for funerals.• Visits, birthdays and special holidays (Mother’s Day,

Christmas, Valentine’s Day) are major occasions tobuy flowers. Mono-bunches are mainly bought ashome decoration, and mixed bouquets as gifts.

• Mono-bunches are mainly purchased at supermarkets,while mixed bouquets are bought at florists.

• Regarding mono-bunches, Dianthus accounted for 34percent of flowers bought. Dendranthema (17%),Rosa (9%), Lilium (8%) and Freesia (5%) followedin order of importance. Other flowers are Tulipa,Daffodils, Gerbera, Iris and Gerbera.

• The market share of mixed bouquets decreasedslightly from 40 percent in 1998 to 37 percent in2001.

• Since British people prefer a classical and cosyinterior, they are most likely to choose bouquetsmixed with traditional flowers (such as Rosa, Freesia,Dendranthema) in “sweet” colours (pink and purple).

• Regarding mono-bunches, Dendranthema andDianthus are popular flowers bought, as these speciesare relatively cheap and have a longer vase lifecompared to other species of cut flowers.

• British consumers determine their purchasing choiceby focussing on the freshness, affordable price andthe scent.

The Netherlands• The Netherlands market for flowers and foliage is

showing signs of saturation.• The number of flower consumers has decreased in

the last few years, but consumers are spending moreon expensive flowers.

• Medium and large-sized enterprises, the so-calledinstitutional market, are becoming importantconsumers of flowers. About 80 percent of theseenterprises is spending on flowers.

• About 50 percent of the flowers is bought as presents(love, affection, weddings).

• Bouquets are the most popular product group,followed by Rosa.

• Of all coloured Dendranthema, the white and yelloware the most popular.

• Birthdays, visits and special holidays (Mother’s Day,Christmas, Valentine’s Day) are major occasions forbuying flowers.

Table 3.3 Occasions for buying flowers in the UK(% of sales), 1998-2001

1998 1999 2000 2001

Present 49 45 43 41Own use 32 37 39 43Funeral 15 13 14 12Other 5 5 4 4


Top 10 cut flowers consumption in The Netherlands:

1 Mixed bouquets 2 Rosa3 Tulipa 4 Dendranthema5 Gerbera6 Lilium 7 Alstroemeria 8 Freesia9 Dianthus

10 Iris

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France• Total French expenditure on flowers is stabilising.• French consumers are less satisfied with the

quality/price relationship.• Competition with other products increased (wine is

also frequently purchased as a gift).• French people are often away from home at the

weekend and therefore barely purchase flowers andfoliage to decorate their houses.

• Visits and birthdays are major occasions for buyingflowers. About 53 percent of flowers bought was togive as presents, while 31 percent was destined forfunerals and 17 percent for own use.

Italy• Italians buy flowers mainly to give away as gifts

(89%). Birthdays (31%) and funerals (13%) are theother two main occasions for buying flowers andfoliage.

• Mono-bunches accounted for 37 percent of flowerspurchased. Bouquets with a share of 30 percentfollowed in order of importance.

• Valentine’s day, Women’s day, Mother’s day andreligious (holi)days cause high sales. In the secondhalf of the year, All Saint’s Day and Christmas aremajor reasons to purchase flowers.

• Rosa, Gerbera, Lilium, Dianthus and Orchids are themost important flowers bought.

• Dendranthema are mainly bought on All Saint’s Day.Gladiolus are bought for funerals.

Spain• Spanish consumption of cut flowers has steadily been

steadily increasing for many years. In 2002, theaverage Spanish consumer spent € 19 euro onflowers. The coming years, cut flower consumption isexpected to increase by 6% per year.

• Special occasions (birthdays, funerals) are still themost important reason to purchase flowers.

Nevertheless, buying flowers for own use is slowlyincreasing in importance.

• Mixed bouquets are increasing in popularity inSpain, accounting for 32 percent of total cut flowersales. This increase is mainly at the expense of salesof flower arrangements (19 percent). About 48percent of the cut flowers is sold separately or in amono-bunch.

• The typical Spanish flower consumer lives in a city.The urban Catalunya region and Madrid togetheraccount for 36% of total Spanish flower sales.

Table 3.4 Occasions for buying flowers in Spain,1998-2002(% of sales)

1998 2002

Own use 8 14Special occasions 92 86


no reason13%

Birthday28%

other 17%

Mother's day 3%

visit 9%love/affection 7%

thank you 7%

anniversary 7%

Christmas 4%

visit to patients 5%

Figure 3.2 Occasions for purchasing flowers, 2000

Source: GfK cadeaumonitor, Horticulture CommodityBoard

21

4 PRODUCTION

In general, the following important production trendsare recognised in the main production countries inNorth Europe (The Netherlands, Germany andDenmark):\ Production area is slowly declining.\ Number of growers is decreasing.\ Total production is stable.

This means that the average cultivated area percompany and output per hectare is increasing. Hence, scale-enlargement and increased productivityhave taken place.

In most production regions around the Mediterranean,we can recognise a different trend with production areaand output slightly increasing.

Although there is often no (recent) data on productionof cut flowers in most EU countries, it is possible togive an indication of the main cut flower producingcountries in the EU, by looking at the figures availableand at the area under production.

In general, all EU countries described above reported alower production of cut flowers compared to the yearsbefore. AIPH (International Association of HorticulturalProducers) acknowledged this and even reported resultsas bad as in 1999 for cut flower production. Some East-European countries like Hungary and Czech Republic

reported a small increase in the production, in contrastto EU countries like Belgium, Germany, Finland,France, Luxembourg, The Netherlands and the UKwhere production decreased.

Over the last years, the number of producers in EUcountries has been decreasing steadily, reflecting theunfavourable situation in Europe. Only Hungaryreported an increased number of producers, in contrastto Luxembourg, Sweden and the Czech Republic, wherethe number of producers stagnated.

The development of the area used for flower productionin the EU differs strongly per country. Countriesshowing increases in area under production are mainlyMediterranean countries like Spain and Italy, whileNorthern European producing countries like TheNetherlands, Germany and Denmark show fairly stableto declining areas under cultivation.

The following box provides the order of importance ofthe cut flower production in a number EU countries (interms of ha open area).

Table 4.2 Area under production for cut flowers and pot plantsIn Ha

Country Area Year

The Netherlands 8,479 2000Italy 8,463 1998Spain 7,617 1997Germany 7,056 2000UK 7,297 2000France 6,628 1999Belgium 1,721 1999Denmark 444 1999Finland 141 1999Sweden 63 1999

Source: AIPH Yearbook of the International HorticulturalStatistics (1999, 2002), Flower Council of Holland (2003)

Table 4.1 Production of cut flowers and pot plants in selected EU countriesIn € million

Country Production Year

The Netherlands 2,057 2002France 1,503 2000Germany 1,135 1997Italy 859 1999Denmark 354 1998Spain 345 1990Austria 240 1999Belgium 238 1999Sweden 199 1990UK 114 2000Finland 76 1999

Note: more recent data for Germany, Spain and Swedenare not available.

Source: AIPH Yearbook of the International HorticulturalStatistics (1999, 2000, 2001, 2002)

22

Netherlands growers are capable of producing top-quality Rosa throughout the year, amongst others throughusing assimilation lighting. The auction prices are aclear indication that their efforts are appreciated by themarket. In 2000, the average price of a Netherlandsgrown Rosa was € 0.28, with an average of € 0.13being paid for a Rosa produced outside the Netherlands.

Growers are now approaching the market carefully andonly offer a limited number of their novelties to avoidan early saturation of the markets and premature declinein prices.

GermanyCompared to The Netherlands, more cut flowers arecultivated in open areas than under glass in Germany. Dendranthema and Rosa are mainly produced underglass. In the open area, summer flowers accounted forthe major part of the production. The area cut flowersunder glass slightly decreased compared to 1996, incontrast to the open area, which witnessed an increase.

Major cut flowers producing regions in Germany areNiederrhein, Hamburg, Nauheim and Stuttgart.

UKThe UK production of cut flowers is estimated at € 114million in 2000, expecting to gradually decrease in thenext few years. The flowers produced, mainly for

national use, are cultivated on a total area of 7,300 ha, a large part of which is in the open air.

Narcissus (Daffodils) are largely cultivated in England(amongst others on the Channel Islands) and Wales,however, the area of cultivation is gradually decreasing.

The area under glass used for the production of cutflowers is estimated at 137 ha in 2001, indicating aconsiderable decrease compared to the level of 1992(296 ha). This is mainly caused by the decrease in areacultivating Dendranthema.

Country Major cut flowers produced in terms of ha open area

Germany Summer flowers, Rosa, Dendranthema, Tulip, NarcissusBelgium Dendranthema, Azaleas, BegoniasSpain Dianthus, RosaFrance* Gladioli, Rosa, Dianthus, Tulipa, DendranthemaItaly Rosa, Dianthus, Gladioli, Large Dendranthema The Netherlands Rosa, Dendranthema, Lilies, Gerberas, Freesias, OrchidsUK Dendranthema, Alstroemeria, Dianthus, Daffodils (Narcissus)

*cut flowers and foliage under glass

Source: AIPH (2002)

Table 4.3 Production of cut flowers in Germany,1996/2000In Ha

cut flowers 1996 2000

under glass 662 637open area 1963 2,400

total 2,625 3,037


Table 4.4 Production of cut flowers in the UK, 1995/2000In Ha

1995 1996 1997 1998 1999 2000

cut flowers produced in open area 6,224 5,396 5,555 5,758 5,622 6,281cut flowers produced under glass 935 1,011 1,028 1,029 1,041 1,016

total 7,159 6,407 6,583 6,787 6,663 7,297


pressure of international competition. However, the sizeof cultivated area has not changed. Important regionsproducing cut flowers are given in the table on the right.

The region Provence-Alpes-Cotes-d’Azur (PACA) is byfar the most important cut flower area, accounting foralmost 50 percent of total cut flower cultivated area.Some regions, such as Provence and Paris, are underpressure due to urbanisation. Conversely, increasedproduction development is taking place in the Westernregions, thanks to the size and innovations ofcompanies in the Loire Valley, and thanks to a strongco-operative organisation encouraging the establishmentof young growers in Brittany.

Rosa, Dianthus and Gladioli were the most popular cutflowers produced in 1999. Other major produced cutflowers are Dendranthema and Tulipa.

23

The NetherlandsThe production of cut flowers is estimated to have been€ 2,057 million in 2002. The number of growers of cutflowers and pot plants declined to 9,273. The areaamounted to 8,525 ha, indicating an increase of 15percent compared to 1990.

About 75 percent of the area is accounted for by cutflowers and about 66 percent of the number of growersis involved in cut flowers.

FranceThe French cut flower production amounted to € 1,503million in 2000. The number of producers is decreasingby 4 or 5 percent annually. Since 1989, about 50percent of the growers disappeared due to the high

Table 4.6 Netherlands development of area and growers

Area (Ha) No of growers

1994 7,951 10,8021995 8,016 10,4281996 8,004 10,1401997 7,857 9,7421998 8,116 9,4921999 8,525 9,2732000 8,479 na

Source: Flower Council of Holland (2001)na = not available

Table 4.7 Distribution of cultivated area, 1999In Ha

Region Ha

PACA 1,277Alsace 20Pays-de-Loire 298Haute-Normandie 18Ile de France 296Bourgogne 16Languedoc-Roussillon 129Corse 14Bretagne 99Basse-Normandie 13Rhône-Alpes 91Champage-Ardennes 12Aquitaine 90Lorraine 11Centre 78Limousin 7Poitou-Charentes 54Auvergne 7Picardie 51Franche-Comté 3Midi-Pyrénées 51Nord-Pas-de-Calais 43

Total 2,678


Table 4.5 Area used for the production of cutflowers in the England and Wales,1998-2000In Ha

1998 1999 2000Cut flowers open areaNarcissus 3,808 3,823 3,527Gladioli 91 113 73Other cut flowers 772 535 462

Total 4,671 4,471 4,062

Cut flowers under glassDianthus 12 12 8Dendrathema 106 106 68Alstroemeria 25 25 68Other cut flowers 90 90 67

Total 233 233 204


24

ItalyProduction of cut flowers in Italy fluctuated between1997 and 1999, from € 779 million in 1997, down to € 664 million in the year after, and reached € 859million in 1999. A number of regions in Italy arefamous for their flowers: San Remo, Campania, Puglia,Toscana, Sicily and Lazio are among the major ones.Due to subsidies, the southern regions are accountingfor more than 60 percent of local production. As manyproducers are changing their production from openareas to areas under glass, they become less dependenton the climate. Since Italian growers are able to supplythe same assortments as Netherlands producers, theyhold a strong competitive position.

Table 4.8 Value of production at farm gate and ranking of main French regions, 2000In € million

Region Value of production Ranking

Provence-Alpes-Cote d’Azur 376 1Pays de la Loire 172 2Ille de France (around Paris) 130 3Rhône-Alpes (around Lyon) 111Centre 107Brittany 89 4Languedoc Roussillon 71Aquitaine 61 5Other regions 398

Total France 1,503

Source: FloraCulture International (April 2002)

Table 4.9 French production of selected cut flowers, 1999In € million

Rosa 22Dianthus 116.6Gladioli 75.8Dendranthema 70.3Tulipa 76.8


Table 4.10 Production of cut flowers in Italy, 1998-2000Pieces thousand

1998 1999 2000under glass open area under glass open area under glass open area

Dianthus (standard) 1,149 159 895 227 801 138Rosa 592 58 789 62 625 58Gerbera 498 35 408 21 424 2Other cut flowers - 27 230 124 299 118Dendranthema (spray) 253 86 228 103 286 78Dianthus (spray) 168 86 352 53 250 61Gladioli 136 83 128 79 146 59Lilium 112 26 117 25 115 19Dendranthema 84 62 126 75 99 228Freesia 90 7 92 9 64 7Anemone 89 137 122 150 60 161Tulipa 49 8 49 11 53 10

Total cut flowers 3,515 988 3,861 1,204 3,471 1,159


25

Local production has not changed much, however, ashift in the production of Dendranthema has taken place.The production of this species increased mainly underglass, which brought about a year-round supply. Thequality of Dendranthema produced under glass is almostcomparable to the Dendranthema produced in TheNetherlands, consequently, traditional growers producingin open area are having difficulties to compete.

SpainThe local production is traditionally concentrated in sixregions, from the south to the northwest of Spain. The main cut flower species produced are Dianthus(47%) and Rosa (16%).

The major part of producers concerns family enterprisesoperating on a small-scale, with old-fashionedtechnology and machines. This is mainly due to a lackof resources to invest structurally in companies.

Since the sector is fragmented and organisation andoperation do not always focus on the market, thematurity of the market and the over-supply haveresulted in reduction in prices of Dianthus. Many smallproducers are not able to produce in a profitable way.The bigger producers, mostly professionals and biggerplayers in the market, located in Catalonia and Valencia,do not encounter such problems because of their betterproduction technology and variety in assortment.

Due to the unfavourable situation, a number ofproducers switched to producing plants and vegetables,for which prices and returns seemed better.

The major production regions are Andalusia, Cataluña,Canary Islands, Valencia, Galicia and Murcia. Thetraditional production region Cataluña (Barcelona) isbecoming less important due to expensive land and alack of staff. The production on the Canary Islands isroughly stable. The Canary Islands and Andaluciamainly produce Rosa.

Opportunities and threats for exporters in developingcountries:

Opportunities:• Stable or declining production of cut flowers in

Europe.

Threats:• More and more European growers apply high-tech

production methods, which enables them to produceproducts of the highest quality.

• High level of European research on productiontechniques.

• Shift of production from northern European zonestowards South Europe.

Table 4.11 Area used for the production of cut flowersIn % and Ha

Region 1998 (%) 1998 (ha) Number of Average areaenterprises (ha)

Andalucia 43.48 1,000 1,393 0.72Canarias 12.61 290 309 0.94Cataluña 10.17 234 208 1.13Valenciana 5.04 116 252 0.46Galicia 1.30 30 75 0.40Murcia 7.61 175 635 0.28Others 19.78 455 3,317 0.14


Table 4.12 Region of production, 1998In % of variety

Rosa Dianthus Others

Andalucia 15.8 57 27.5Murcia 9.2 13.9 8.9Galicia 9.9 10.6 8.5Others 18.8 8.9 22.5Canarias 30.7 4.9 12.4Cataluña 9.6 3.6 10.5Valenciana 6.0 1.1 9.7

Source: Flower council of Holland (2003)

26

5 IMPORTS5.1 Total imports

Of total EU flowers and foliage imports in 2001, 76percent consisted of imports from other EU countries.In other words, only 24 percent was imported fromoutside the EU. With regard to extra-EU imports,meaning imports by the EU countries supplied bycountries outside the EU, The Netherlands was theleading importer, accounting for 58 percent. In terms ofvolume, that share of The Netherlands is even larger,namely 63 percent.

A great part of Netherlands imports is re-exported toother countries, in particular Germany. The secondlargest importer of cut flowers and foliage from outsidethe EU was UK with € 120 million in 2001, followedby Germany (€ 72 million) and Italy (€ 35 million).Between 1999 and 2001, total extra-EU importsincreased by 22 percent to € 714 million.

Overall, the EU was the world’s leading importer offlowers and foliage in 2001 with total imports amountingto more than € 3 billion. Between 1999 and 2001, totalEU imports slightly increased by almost 8 percent.

Table 5.1 Extra-EU imports of cut flowers and foliage by EU countries, 1999-2001€ million/ thousand tonnes

1999 2000 2001value volume value volume value volume

The Netherlands 304 105 387 106 405 104UK 103 24 113 25 120 25Germany 67 18 73 17 72 16Italy 38 8 39 7 35 7Spain 19 4 22 4 24 4France 20 4 22 4 24 4Belgium 15 3 17 3 17 3Sweden 3 9 3 0.4 5 1Greece 3 1 4 1 3 1Austria 3 1 3 1 3 1Portugal 2 0.3 2 0.4 2 0.4Denmark 1 0.4 2 1 2 0.4Ireland 2 0.3 2 0.2 1 0.2Finland 1 0.2 1 0.1 0.3 0.03Luxembourg 0.3 0.03 0.1 0.01 0.2 0.03

EU 583 178 690 169 714 167

Source: Eurostat (2002)

27

Considering total imports (intra- and extra-EU),Germany was the largest European importer, accountingfor 27 percent of total EU imports. The second largestimporter in the EU was the United Kingdom (22%),followed by The Netherlands (16%) and France (14%).

The Netherlands was the main supplier of cut flowersand foliage to other EU member states in 2001,accounting for more than € 2 billion or 67 percent oftotal imports.

Besides The Netherlands, other major cut flowersuppliers to the EU were Kenya (largest non-EUsupplier), Israel, Colombia, Spain, Ecuador andZimbabwe. Between 1999 and 2001, in contrast toIsrael, Kenya, Zimbabwe and Ecuador stronglyincreased their exports.

Table 5.2 EU imports of cut flowers and foliage, 1999-2001€ million/ thousand tonnes


Total 2,796 700 3,068 646 3,009 604

Germany 914 224 912 184 809 170United Kingdom 505 124 587 124 668 115The Netherlands 380 132 479 134 484 129France 407 98 447 95 427 83Italy 155 29 173 28 159 25Belgium 104 29 115 25 110 24Austria 96 15 88 15 96 17Denmark 63 9 73 11 74 11Sweden 45 16 53 7 48 7Spain 39 9 46 11 44 8Ireland 28 4 32 4 35 5Portugal 16 3 8 3 18 3Greece 25 5 22 4 16 3Finland 15 2 15 2 14 2Luxembourg 6 1 7 1 7 1


28

The Netherlands

Kenya

Israel

Colombia

Spain

Ecuador

Zimbabwe

Italy

Belgium

Germany

France

Zambia

Thailand

United Kingdom

India

South Africa

Uganda

Turkey

2001

2000

1999

2,023

0 500 1,000 1,500 2,000 2,500

179

125

103

92

82

69

56

43

29

21

18

18

18

15

14

13

11

Figure 5.1 The leading suppliers of flowers and foliage to the EU, 1999-2001€ million


29

GermanyGermany was the leading European importer in 2001,with imports of cut flowers and foliage amounting to €809 million, although this indicated a strong decrease of11 percent compared to 1999. The decrease was mainlycaused by the fall in imports of Dianthus (down 33%),Orchids (down 29%) Dendranthema (down 22%). In 2001, cut flowers represented 97 percent of totalimports of flowers and foliage. Rosa ranked first as themain imported fresh cut flower, followed byDendranthema and Dianthus.

The Netherlands was by far the largest supplier of cutflowers and foliage, accounting for 86 percent of allGerman imports in 2001, a market share whichremained fairly stable for the period reviewed. The principal non-EU suppliers in 2001 were Ecuador

(€ 15 million), Kenya (€ 13 million), Colombia (€ 10million), Israel (€ 8 million), South Africa (€ 5 million),Tanzania (€ 4 million) and India (€ 3 million).

Total

Other fresh cut flowers

Rosa

Dendranthema

Dianthus


Foliage

Orchids

Gladioli

2001

2000

1999

809

207

45

447

0 100 200 300 400 500 600 700 800 900 1000

39

33

21

14

3

Figure 5.2 German imports of cut flowers and foliage, 1999-2001€ million


The leading suppliers of cut flowers and foliage to Germany, 2001 Share of DC (%)

Rosa \ The Netherlands (81%), Kenya (6%), Ecuador (6%) 16Dianthus \ The Netherlands (62%), Colombia (24%), Italy (6%) 28Orchids \ The Netherlands (87%), Thailand (11%), 11Gladiolus \ The Netherlands (98%), Italy (1%), Spain (1%) 0.2Dendranthema \ The Netherlands (99%), Italy (1%), 0.0Other fresh cut flowers \ The Netherlands (93%), Italy (3%), Israel (1%) 1Prepared cut flowers \ The Netherlands (86%), South Africa (3%), Italy (3%) 5Foliage \ The Netherlands (22%), Italy (16%), India (13%) 39

Cut flowers & foliage _ The Netherlands (86%), Italy (3%), Ecuador (2%) 7

Note: Share of Developing Countries (DC) in % of total valueSource: Eurostat (2002)

30

United KingdomThe UK was the second largest importer of cut flowersand foliage into the EU. Between 1999 and 2001,imports increased considerably, amounting to € 668million in 2001. Even though imports of Dianthusslightly decreased, it remained the most importantspecies, followed by Dendranthema and Rosa.

The Netherlands alone supplied 74 percent of cutflowers and foliage to the UK. Note that this figure hasbeen increasing since 1996. The second largestsupplying country, accounting for € 51 million, wasKenya. Colombia became the third largest supplyingcountry due to its export decrease between 1999 and2001, amounting to € 49 million in 2001.

The leading suppliers of cut flowers and foliage to the UK, 2001 Share of DC (%)

Rosa \ The Netherlands (56%), Kenya (31%), Colombia (5%) 40Dianthus \ Colombia (42%), Spain (21%) The Netherlands (19%) 60Orchids \ The Netherlands (64%), Colombia (17%), Thailand (15%) 35Gladiolus \ The Netherlands (60%), Colombia (27%), Thailand (5%) 36Dendranthema \ The Netherlands (96%), Spain (3%) 0.4Other fresh cut flowers \ The Netherlands (88%), Spain (4%), Kenya (3%) 4Prepared cut flowers \ The Netherlands (69%), Kenya (23%),Columbia (2%) 27Foliage \ The Netherlands (40%), India (18%), Italy (12%) 30

Cut flowers & foliage _ The Netherlands (74%), Kenya (8%), Colombia (7%) 17


Total


Dianthus

Dendranthema

Rosa


Foliage

Orchids

Gladioli

2001

2000

1999

668

102

98

356

0 100 200 300 400 500 600 700 800

76

27

5

4

2

Figure 5.3 UK imports of cut flowers and foliage, 1999-2001€ million


31

FranceIn 2001, France was the third largest importer of cutflowers and foliage in Europe. French imports increasedslightly by 5 percent compared to 1999, amounting to € 427 million in 2001.French imports of prepared cut flowers and Orchidsincreased strongly. In 2001, imports of these flowersamounted to € 35 million and € 15 million,representing an increase of 88 percent and 39 percentrespectively compared to 1999.

In 2001, The Netherlands was the largest supplier andaccounted for 84 percent of total cut flowers and foliageimports into France. The second largest suppliers wasBelgium. The importance of these neighbouringcountries has grown strongly since 1990.

The leading suppliers of cut flowers and foliage to France, 2001 Share of DC (%)

Rosa \ The Netherlands (89%), Ecuador (3%), Belgium (3%) 7Dianthus \ The Netherlands (57%), Spain (21%), Colombia (8%) 13Orchids \ The Netherlands (93%), Belgium (4%), 1Gladiolus \ The Netherlands (84%), Spain (7%), Italy (4%) 1Dendranthema \ The Netherlands (92%), Spain (4%), Belgium (3%) 1Other cut flowers \ The Netherlands (86%), Belgium (5%), Italy (2%) 5Prepared cut flowers \ The Netherlands (77%), Belgium (8%), Ecuador (3%) 6Foliage \ The Netherlands (45%), Belgium (12%), Italy (11%) 14

Cut flowers & foliage _ The Netherlands (84%), Belgium (5%), Spain (3%) 5

Note: Share of Developing Countries (DC) in % of total valueSource: Eurostat (2002)


Rosa

Dendranthema


Dianthus

Orchids

Foliage

Gladiolus

2001

2000

1999

184

38

35

87

0 50 100 150 200 250

24

15

10

2

Figure 5.4 French imports of cut flowers and foliage, 1999-2001€ million


32

The NetherlandsThe demand of the Netherlands traders is, to a highdegree, met by local production, but the significance ofimports is growing. Imports enable the Netherlandstrade to supply a broad selection of cut flowers to itsEuropean customers throughout the year. The mostsignificant imports consist of cut flowers in the wintermonths and selected flowers which can be grown moresuccessfully and/or competitively in other countries. A large proportion of the imported cut flowers is re-exported.

The importance of cut flower imports to the Netherlandstrade is increasing in terms of value, while in terms ofvolume a fluctuation is recognised. Total imports of cutflowers increased strongly from € 380 million in 1999to € 484 million 2001, indicating an increase of 27percent. In terms of volume, imports into TheNetherlands amounted to 132 thousand tonnes in 1999,increasing to 134 thousand tonnes in 2000, thenreversing to 129 thousand tonnes in 2001.

Due to a strong decline in imports from Israel between2000 and 2001, Kenya became the largest supplier toThe Netherlands. In 2001, Kenya accounted for 23percent of total imports, while Israel supplied about 206percent of total Netherlands imports. While the politicalsituation in Israel and Zimbabwe remains a majorobstacle to their exports, Kenyan exporters have beenable to further strengthen their position on theNetherlands market.

Imports of Orchids and Rosa have increased strongly.The total imports of Orchids and foliage amounted to € 4 million and € 224 million in 2001, representingrespectively a 65 percent and 35 percent increasecompared to 1999. Developing countries traditionallyhave a strong position in the Netherlands import marketfor Rosa, accounting for 89 percent of total Rosaimports. In 2001, imports of Rosa and Dianthus fromdeveloping countries, continued to grow considerably.Developing countries supplied about € 198 millionworth of Rosa and € 25 million worth of Dianthus toThe Netherlands.

100%

80%

60%

40%

20%

0%

Ger

bera

Lil

ium

Als

troe

mer

ia

Zan

tede

schi

a

Ros

a

Hel

iant

hus

Ast

er

Lim

oniu

m

Dia

nthu

s

Gyp

soph

ila

Orn

itho

galu

m

Ery

ngiu

m

Sol

idag

o

Wax

flow

er

Rus

cus

imports

product

Figure 5.5 Supply of cut flowers and foliage to Netherlands auctions, 2000 % of total supply

Source: VBN (2001)

33

The leading suppliers of cut flowers and foliage to The Netherlands, 2001 Share of DC (%)

Rosa \ Kenya (39%), Zimbabwe (19%), Ecuador (11%) 89Dianthus \ Spain (40%), Colombia (33%) 49Orchids \ Thailand (45%), Germany (33%), South Africa (10%) 59Gladiolus \ Spain (48%), Portugal (35%), Israel (13%) 1Dendranthema \ Belgium (48%), Germany (26%) 15Other cut flowers \ Israel (41%), Zimbabwe (12%), Kenya (11%) 37Prepared cut flowers \ Poland (21%), Côte d’Ivoire (13%), Israel (12%) 44Foliage \ India (15%), China (15%), Turkey (15%) 59

Cut flowers & foliage _ Kenya (23%), Israel (20%), Zimbabwe (13%) 63


Total

Rosa


Dianthus

Foliage

Orchids


Gladioli

Dendranthema

2001

2000

1999

448

185

52

224

0 100 200 300 400 500 600

14

4

3

0.5

0.3

Figure 5.6 Netherlands imports of cut flowers and foliage, 1999-2001€ million


ItalyItaly has become a net importer of flowers and foliagesince 1985. Imports of most products must be viewed ascomplementary to domestic production. Between 1999and 2001, imports stabilised, amounting to € 159 million.

Imports originating in The Netherlands and Thailand(mainly Orchids), the two largest suppliers of cutflowers and foliage to Italy, increased between 1999 and2001. The Netherlands accounted for 73 percent of totalItalian imports (€ 116 million), and Thailand for 8percent (€ 13 million). Imports from Ecuador decreasedbetween 1999 and 2001, declining in ranking of majorsuppliers, from a second place to a third place.

Between 1999 and 2001, imports of Dendranthema andprepared cut flowers into Italy decreased by 18 percentand 11 percent respectively.

34

The leading suppliers of cut flowers and foliage to Italy, 2001 Share of DC (%)

Rosa \ The Netherlands (80%), Ecuador (13%) 17Dianthus \ Spain (78%), The Netherlands (15%) 4Orchids \ Thailand (52%), The Netherlands (43%) 53Gladiolus \ The Netherlands (92%), France (7%) 0.0Dendranthema \ The Netherlands (100%) 0.0Other cut flowers \ The Netherlands (82%), France (4%) 11Prepared cut flowers \ The Netherlands (51%), France (10%) 11Foliage \ India (28%), The Netherlands (20%), France (12%) 47

Cut flowers & foliage _ The Netherlands (73%), Thailand (8%), Ecuador (6%) 20


Total

Rosa


Orchids

Dendranthema

Foliage


Dianthus

Gladioli

2001

2000

1999

159

54

25

57

0.0 50.0 100.0 300 150.0 200.0

12

6

4

1

0.1

Figure 5.7 Italian imports of cut flowers and foliage, 1999-2001€ million


SpainImports of cut flowers and foliage into Spain fluctuatedbetween 1999 and 2001, amounting to € 44 million in2001. The Netherlands was the leading supplier,accounting for 38 percent of total imports in 2001,followed by Colombia (33%).

Imports of Rosa and Dianthus increased by 40 percentand 33 percent compared to 1999, amounting to € 13million and € 10 million respectively. In contrast,imports of foliage and Gladioli decreased considerably,reaching € 2 million (down 36%) and € 32 thousand(down 29%) in 2001.

35

Total

Rosa


Dianthus

Dendranthema


Foliage

Orchids

Gladioli

2001

2000

1999

44

11

10

13

0.0 10.0 20.0 30.0 40.0 50.0

3

3

2

1

0.0

Figure 5.8 Spanish imports of cut flowers and foliage, 1999-2001€ million


The leading suppliers of cut flowers and foliage to Spain, 2001 Share of DC (%)

Rosa \ Ecuador (48%), Colombia (38%) 87Dianthus \ Colombia (84%), France (7%) 85Orchids \ The Netherlands (65%), Thailand (25%) 28Gladiolus \ The Netherlands (69%), Italy (25%) 0.0Dendranthema \ The Netherlands (99%), Portugal (1%) 0.1Other cut flowers \ The Netherlands (82%), Colombia (6%) 9Prepared cut flowers \ The Netherlands (62%), China (8%) 18Foliage \ India (33%), The Netherlands (19%), France (13%) 57

Cut flowers & foliage _ The Netherlands (38%), Colombia (33%), Ecuador (15%) 53


36

5.2 Imports by product group

Fresh cut flowers form the main imported productgroup covered by this survey. In the EU, total importsof fresh cut flowers were € 2.6 billion in 1999 and€ 2.8 billion in 2001. Even though Germany decreasedits imports between 2000 and 2001, it remained thelargest EU importer accounting for € 754 million,followed by the UK (€ 637 million). The main supplieris The Netherlands, supplying 68 percent of total EUimports of fresh cut flowers.

RosaSince 1993, imports of fresh cut flowers has beendominated by Rosa. Imports increased by about 10percent between 1999 and 2001, amounting to € 766million in 2001. The Netherlands became the largestEU importer of fresh cut Rosa due to a decrease inGerman imports, and accounted for 29 percent of totalEU imports in 2001. Germany imported € 207 millionor 27 percent of total imports, followed by France(12%) and the UK (10%). The smaller importingcountries such as Ireland and Portugal considerablyincreased their imports between 1999 and 2001,indicating increases by 94 percent and 20 percentrespectively.

The Netherlands not only produces but also re-exportslarge volumes of Rosa. Therefore, The Netherlands wasalso by far the leading supplier of fresh cut Rosa to theEU, accounting for 55 percent of total EU imports. Theother EU members, in contrast, play only minor roles.Kenya is ranked second and Ecuador third on the list ofthe most important Rosa suppliers to the EU. The roleof African countries as suppliers of Rosa to the EUmarket is growing strongly.

Tota

l

Oth

er f

resh

cut

flo

wer

s

Ros

a

Dia

nthu

s

Den

dran

them

a

Pre

pare

d cu

t flo

wer

s

Orc

hids

Foli

age

Gla

diol

i

3,500

3,000

2,500

2,000

1,500

1,000

500

0

2001

2000

1999

3,009

1,461

766

248 219159 76 73 8

Figure 5.9 Imports of cut flowers and foliage into the EU by product groups, 1999-2001€ million


37

Table 5.3 Imports of Rosa into the EU, 1999-2001€ thousands / tonnes


Total 694,156 152,401 785,432 147,180 766,154 144,541

The Netherlands 166,339 47,679 213,078 55,073 224,143 57,143Germany 233,419 46,245 237,789 41,174 207,114 34,962France 92,461 19,280 99,029 19,681 99,439 18,393United Kingdom 53,558 8,373 72,967 9,918 75,658 10,904Italy 53,915 6,940 59,556 6,677 57,431 6,655Austria 28,304 3,917 26,810 3,825 30,255 4,364Belgium 18,403 3,751 22,051 3,839 20,663 4,634Spain 9,573 1,517 12,432 1,910 13,380 1,878Denmark 13,229 1,771 15,198 1,839 13,354 2,005Sweden 13,373 11,424 12,609 1,683 10,219 1,343Ireland 2,737 247 3,793 395 5,309 1,139Portugal 3,373 556 3,898 599 4,047 619Finland 2,719 268 2,322 189 2,545 241Luxembourg 1,077 136 2,589 191 1,388 95Greece 1,671 297 1,311 187 1,207 166


The Netherlands

Kenya

Ecuador

Zimbabwe

Israel

Zambia

Uganda

Colombia

Belgium

Tanzania

2001

2000

1999

420

46

23

56

0 50 100 150 200 250 300 350 400 450 500

18

13

13

10

9

126

Figure 5.10 The leading countries supplying Rosa to the EU, 1999-2001€ million


38

DianthusImports of Dianthus into the EU fluctuated strongly inthe period 1999 to 2001, and were valued at € 248million in 2001. The UK was the EU’s leading Dianthusimporting country, accounting for 41 percent of totalimports. The second largest EU importer was The

Netherlands (21%), followed by Germany (16%) andFrance (8%).The main sources of imports are Colombia and TheNetherlands, even though their importance as majorsuppliers is decreasing. Together with Spain, Kenyaholds a prominent position as a supplier of Dianthus.

Colombia

The Netherlands

Spain

Kenya

Turkey

Italy

Morocco

Ecudor

2001

2000

1999

84

49

13

0 10 20 30 40 50 60 70 80 90 100

7

4

4

67

3

Figure 5.11 The leading countries supplying Dianthus to the EU, 1999-2001€ million


Table 5.4 Imports of Dianthus into the EU, 1999-2001€ thousands / tonnes


Total 266,600 89,024 284,452 69,330 247,746 62,250

United Kingdom 110,465 28,452 115,260 27,253 102,014 24,884The Netherlands 47,767 29,591 56,798 15,973 51,811 16,224Germany 59,061 17,944 49,350 10,965 39,429 8,698France 18,190 5,988 26,965 6,953 21,008 5,564Spain 7,720 2,215 10,026 3,121 10,300 2,172Austria 7,966 1,481 8,208 1,444 7,524 1,476Sweden 3,016 522 3,416 459 4,216 584Ireland 3,937 661 5,173 839 3,996 601Belgium 2,756 830 2,942 916 2,216 822Denmark 1,552 278 1,679 271 1,598 354Finland 2,150 385 1,811 291 1,346 240Italy 1,120 441 1,681 588 994 358Greece 392 111 485 134 761 145Portugal 147 52 378 88 303 99Luxembourg 357 73 280 35 229 29


39

OrchidsOrchids are the oldest and most familiar tropical flowerspecies and are also the leading import product. Importsof fresh cut Orchids into the EU slightly increased by 8percent between 1999 and 2001, amounting to € 76million in 2001.

Italy was the largest EU importer of fresh cut Orchids,accounting for 33 percent of total imports, followed by

France (24%) and Germany (18%). German importsconsist mainly of higher priced, high quality Orchids.

The Netherlands was the leading supplier of Orchids tothe EU in 2001. It is the only European country with asizeable orchid export industry. The Netherlandsgrowers produce mainly Phalaenopsis and CymbidiumOrchids, but also Paphiopedilum and Oncidium areproduced in greenhouses throughout the year. Imports

Table 5.5 Imports of Orchids into the EU, 1999-2001€ thousands / tonnes


Total 70,173 7,891 76,153 8,611 75,807 8,269

Italy 23,678 3,490 26,492 3,821 25,459 3,654France 12,739 1,209 16,306 1,744 17,768 1,689Germany 19,132 1,800 14,604 1,307 13,527 1,163The Netherlands 2,494 394 3,877 388 4,112 392United Kingdom 3,317 304 3,213 303 3,755 526Austria 1,839 123 1,980 190 2,588 208Belgium 1,602 111 1,880 183 1,470 70Greece 1,135 105 1,370 128 1,428 129Ireland 111 9 1,759 206 1,341 126Portugal 1,313 82 1,359 75 1,336 64Spain 954 115 1,218 105 1,058 94Sweden 793 62 1,017 96 815 89Finland 602 41 590 33 662 37Denmark 332 19 415 23 406 23Luxembourg 131 27 71 9 86 5


The Netherlands

Thailand

Germany

Singapore

United Kingdom

2001

2000

1999

50

0 10 20 30 40 50 60

18

2

1

1

Figure 5.12 The leading countries supplying Orchids to the EU, 1999-2001€ million


40

from Thailand, the world’s largest exporter of tropicalcut Orchids and second largest supplier to the EU,amounted to € 18 million.

GladiolusCompared to the other products described in thissurvey, Gladiolus imports into the EU are very small.Besides the small trading, developing countries play aminor role, as they supplied only 8 percent of totalimports in 2001.

The Netherlands remained the leading supplier ofGladiolus to the EU in 2001. The Netherlands’ supplyof Gladiolus to the EU amounted to more than _ 6million in 2001, accounting for 80 percent of totalimports to the EU.

DendranthemaEU imports of Dendranthema decreased in the last fewyears and amounted to € 219 million in 2001. In thatsame year, the leading EU importer, the UK, accountedfor 38 percent of total imports, followed in order ofimportance by Germany (21%) and France (18%).

The major share, 96 percent of total imports, wassupplied by The Netherlands. The second and thirdmost important suppliers were Spain and Belgium.Developing countries do not play a significant role inthe EU trade in Dendranthema.

Prepared cut flowersNot all cut flowers are sold as freshly picked products.A relatively small proportion, 5 percent of total cutflower imports, is in some way prepared before beingoffered to European consumers. Drying and dyeing, inparticular, are special preparations that cut flowers canundergo. Other ways of preparing are bleaching orimpregnating the flowers.

In 2001, all EU member states together importedprepared cut flowers worth € 159 million. Strongdifferences exist in the quantities of prepared cutflowers imported by the various EU member states. In2001, the largest EU importer of prepared cut flowerswas France, showing fluctuations in imports between1999 and 2001. French imports amounted to € 36million, representing a share of 23 percent of total EUimports. The other major importer was Germany (21%),followed by the UK (17%) and Denmark (14%).

The Netherlands is by far the largest supplier,accounting for 76 percent of total EU imports ofprepared cut flowers. In The Netherlands nowadays,many Rosa of the Vendela variety, for instance, are dyedby specialist wholesale companies before being sold toretail buyers. Also many Dendranthema, spray andsingle-flowered varieties, are dyed. Other majorsuppliers were Kenya (4%) and the UK (2%).Developing countries accounted for only 9 percent oftotal EU imports in 2001.

Table 5.6 Imports of Gladiolus into the EU, 1999-2001€ thousands / tonnes


Total 8,963 3,798 9,134 4,360 8,213 3,056

Germany 3,483 1,937 3,504 1,715 2,714 1,249France 2,124 823 2,019 790 1,786 783United Kingdom 1,182 340 1,212 610 1,640 497The Netherlands 356 113 484 634 462 27Belgium 312 165 358 189 393 129Sweden 350 89 365 112 370 83Austria 370 117 391 132 351 160Finland 147 37 133 35 155 44Ireland 334 96 144 12 110 14Italy 59 16 81 17 86 22Denmark 112 29 91 35 85 24Spain 45 17 39 23 32 17Portugal 54 9 286 47 23 6Luxembourg 28 9 8 2 5 0Greece 8 1 20 7 2 1


41

FoliageThe importance of foliage, compared to fresh andprepared cut flowers, is modest. Of the total imports ofcut flowers and foliage in 2001, only 2 percentconsisted of foliage. Total imports of foliage into theEU amounted to € 73 million in 2001, indicating a 7percent decrease compared to the previous year. The most important species imported were:• Asparagus;• Eucalyptus;• Leatherleaf ferns (Arachniodes adiantiformis);• Ruscus;• Aspidistra; and• Monstera.

Germany was the leading EU importer, accounting for29 percent of EU imports, with imports worth € 21million in 2001. The Netherlands and France, whoseimports were rising, followed in order of importance.

The Netherlands (€ 18 million), Italy (€ 10 million) andIndia (€ 9 million) were the leading suppliers of foliageto the EU. It should be noted that, although notmentioned in Eurostat figures, Costa Rica andGuatemala are also major developing countriessupplying foliage to EU countries.

Bulb flowersBulb flowers are mainly produced in the EU for thelocal trade. Developing countries do not play a majorrole in this market segment.

Table 5.7 Imports of Dendranthema into the EU, 1999-2001€ thousands / tonnes


Total 221,607 63,309 249,002 58,056 219,156 51,696

United Kingdom 84,486 22,911 96,864 22,848 98,079 19,669Germany 58,072 17,045 57,662 12,628 45,070 11,105France 32,218 9,774 42,596 10,467 35,637 9,090Italy 14,866 5,479 17,187 4,703 12,255 3,982Belgium 5,802 1,874 6,576 1,803 5,830 2,392Ireland 4,542 1,062 4,507 665 3,866 685Spain 2,926 1,024 3,941 1,135 3,367 1,216Austria 3,587 751 3,487 661 3,093 724Sweden 2,745 476 3,626 554 2,901 520Denmark 2,781 509 3,372 542 2,527 674Greece 3,992 1,007 3,154 713 2,214 531Portugal 2,710 730 2,589 608 2,174 562Finland 1,846 371 1,964 326 1,609 319The Netherlands 856 239 1,263 375 349 206Luxembourg 178 57 215 28 185 21


42

5.3 The role of developing countries

Imports originating in developing countries have beenincreasing strongly over the past ten to fifteen years. In 2001, imports from developing countries amountedto € 575 million, accounting for 19 percent of the totalEU imports of cut flowers and foliage. As shown inFigure 5.13, developing countries played a relativelymore important role in the Netherlands imports than inthe imports of other EU countries, thus illustrating TheNetherlands’ gateway function to the European marketfor imports from developing countries.

The Netherlands is an important market for developingcountries because of its massive trading role indistributing imported flowers throughout Europe.

Its exports of cut flowers and foliage account for about55-60 percent of total world trade, and 86 percent of thetotal EU trade.

The importance of developing countries as suppliers tothe EU is demonstrated by the presence of Kenya,Colombia, Ecuador, Zimbabwe, Zambia, Thailand andIndia among the top ten supplying countries. Other important developing country suppliers are:South Africa, Uganda, Turkey, Tanzania, China,Morocco, Costa Rica and Ivory Coast. Most of thesecountries are specialised in certain species. However, Kenya, for example, exported primarily Rosaand Dianthus, but also many other products like variousspecies of summer flowers.

The

Net

herl

ands

Spa

in

Ital

y

Uni

ted

Kin

gdom

Ger

man

y

Fran

ce EU

70%

60%

50%

40%

30%

20%

10%

0

2001

2000

1999

63%

53%

19%

5%7%

17%20%

Figure 5.13 Share of developing countries in imports of cut flowers and foliage into the selected EU countries, 2001% of imported value


Leading developing country suppliers to the EU (% of total imports from developing countries), 2001

Dianthus Colombia (74%), Kenya (11%)Rosa Kenya (43%), Ecuador (19%), Zimbabwe (16%)Orchids Thailand (91%), Colombia (3%)Gladiolus Colombia (71%), Thailand (13%)Dendranthema South Africa (33%), Colombia (31%)Other fresh cut flowers Kenya (31%), Zimbabwe (22%), Ecuador (20%)Prepared cut flowers Kenya (43%), India (12%), China (11%)Foliage India (36%), China (21%), South Africa (15%)

Total cut flowers and foliage Kenya (31%), Colombia (18%), Ecuador (14%)


43

Uganda, Ivory Coast and China have increased inimportance as suppliers of cut flowers and foliage to theEU. China (an upcoming country supplying foliage tothe EU) exported more than € 6 million worth of cutflowers and foliage to the EU in 2001. Uganda supplied€ 13 million and Ivory Coast € 4 million, illustratingincreases by 129 percent and 89 percent compared to1999.

The leading developing countries exporting cut flowersand foliage to The Netherlands were Kenya, Zimbabweand Ecuador. In 2001, Kenya accounted for 36 percentof total imports into The Netherlands originating indeveloping countries. Zimbabwe and Ecuador wereresponsible for 22 percent and 14 percent of total cutflowers and foliage imports respectively. Due to thecountry’s political situation, exports from Zimbabwehave strongly declined since then.

The main fresh cut flowers such as Rosa, Dianthus,Dendranthema are exported in considerable amounts bycountries like Colombia, Kenya, Zimbabwe andEcuador. The EU market for these products is verycompetitive. Consequently, the margins are relativelysmall and under pressure. New producers fromdeveloping countries, other than the ones mentionedabove, will find that entry to such a competitive marketis rather difficult.

Rosa are the most important cut flower species suppliedby developing countries to The Netherlands.

Dianthus

Rosa

Foliage

Orchids


Gladioli


Dendranthema

Total

2001

2000

1999

46%

10% 20% 30% 40% 50%0%

19%

0,3%

7%

8%

9%

26%

34%

38%

Figure 5.14 Share of developing countries in imports of cut flowers and foliage into the EU, 1999-2001% imported value


Leading developing country suppliers to The Netherlands (% total imports from DC), 2001

Orchids Thailand (76%), South Africa (17%)Rosa Kenya (45%), Zimbabwe (21%), Ecuador (12%) Dianthus Colombia (68%), Ecuador (9%)Dendranthema Uganda (17%), South Africa (13%), Ecuador (13%)Gladiolus Morocco (80%), South Africa (20%)Other cut flowers Zimbabwe (33%), Kenya (30%), Ecuador (21%)Prepared cut flowers Côte d’Ivoire (30%), China (25%), India (15%)Foliage India (25%), China (25%) Turkey (25%)

Total cut flowers and foliage Kenya (36%), Zimbabwe (21%), Ecuador (14%)


44

As shown by Figure 5.15, between 1999 and 2001, theshare of developing countries in Dianthus and Rosaincreased. In contrast, Orchids and Dendranthemadecreased in that same period.

Specialty productsThe market for cut flowers consists of a range ofproduct groups, which offer varying opportunities fordeveloping countries as potential suppliers It is a highlycompetitive market in which importers are continuallyseeking new, special and different products. They tendnot to change easily from one rose supplier to another,but co-operation with someone supplying a new productis considered attractive. A new speciality also offers theprospect of making higher profits than those fromselling conventional floricultural products.

Tropical flowersThe major tropical flowers are Orchids and Anthuriums.Other important products falling within this group areGingers, Strelitzia (birds of paradise), Heliconias andProteas. Note that tropical flowers are not only grown inthe tropics, but also in greenhouses in Germany, Italy,France, Japan, USA and, of course, The Netherlands.

Tropical flowers are distributed by specialisedimporters, who usually combine tropical flowers andfoliage, working with positive temperature distributionchains. The number of these specialised importers israther limited (about 20 in Europe).

Tropical flowers constitute a growing niche market.Flamboyant in their diversity of colours and unusualshapes, they occupy only a marginal position in the

market. According to large Netherlands importers thismarket is not very interesting for new suppliers(basically because of high volume/value ratio), unlessthey have something really special. The market ischaracterised as a supply market. Demand is laggingbehind and prices are under pressure.

Besides the current market perspectives, hightransportation costs tend to impose a limiting effect onthe import of tropical flowers from developingcountries. They are either heavy, as with Heliconias,Gingers and Proteas (some weigh almost 1 kilogram perstem), or they are voluminous, as with Orchids.

Summer flowersThe sales prospects for non-EU cut flowers lieessentially in the European winter months. The favourable climate and the relatively low costs ofproduction (labour) are the major advantages forprospective exporters in developing countries. A veryhigh proportion of the extra-EU cut flower imports isdelivered during the months November to May, whereasin the summer months EU growers can satisfy most ofthis demand quantitatively as well as in terms ofproduct range. Imports are consequently of lessimportance in this period. The main products which areof interest to the trade in the summer months arespecies which are cultivated in the EU. There is a highlevel of interest in innovation and new species;experience has shown that new products can acquire arapidly growing market share, following initialintroduction to the trade.

Rosa

Orchids

Foliage

Dianthus



Dendranthema

Gladioli

total

2001

2000

1999

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

63%

1%

15%

37%

44%

49%

59%

59%

89%

Figure 5.15 Share of developing countries in imports of cut flowers and foliage into The Netherlands, 1999-2001% of imported value


45

BouquetsA relatively high labour input is required for thepreparation of bouquets (combinations of cut flowerswith foliage). Bouquets therefore appear to be anattractive specialty product for developing countries,particularly when exporting directly to EUsupermarkets. There are, however, two importantproblems to be dealt with:• trends (colours, combinations) vary a lot, and are

very hard to predict;• dense packing in order to reduce air freight volume,

and thus reduce costs, has a strongly negative impacton the quality of the bouquet.

Prepared cut flowersThe forms of preparation of flowers mainly consists ofdyeing and drying, but also of bleaching andimpregnating. This product group is to a large extentsubject to trends. Some prepared flowers are importedvia The Netherlands, but are not very popular in thiscountry itself. In Europe, prepared cut flowers aremainly sold in Southern European countries.

Prepared flowers are a speciality product of which themain supplier is The Netherlands, followed by Kenya.Leading developing country suppliers, beside Kenya,are India, Colombia, Tunisia and Tanzania.

An advantage of dried cut flowers is that they are non-perishable. In Asia these flowers are very popular.Prepared flowers are transported by sea containers andsuppliers should be big enough to ship a wholecontainer. There is a market for prepared flowers, butimporters will not easily change from their currentsupplier, if the new supplier is offering the sameproduct. Importers mention that new products willattract interest. But what is new cannot be describedbefore it appears on the market.

Another bottleneck for exporting prepared flowers fromdeveloping countries is that the requirements for theimport of prepared flowers into the EU are more strict(e.g. dyes used) than on the local market. For producerswho already having a large potential local market, theincentive to change their processes in order to export tothe EU may not be very high.

FoliageThe major foliage species imported are: Asparagus,Hedera, Arachniodes adiantiformis (Leather Leaf Fern),Eucalyptus and Ruscus. The leading supplier to the EUmarket is India, followed by The Netherlands, Italy andSouth Africa. Central American countries, particularlyCosta Rica, have also established a strong position onthis market and supply container loads of foliage,mainly Arachniodes Adiantiformis (Leather LeafFerns), to Europe.

According to the COLEACP study, endemic productsfrom exporting ACP countries would be ideal.Furthermore, small-leafed standardised foliage (lowvolume/value ratio) is recommended such as Tops ofDracaena Marginata, Sanderiana, etc., Areca, Calatheaand small Pandanus. There is room for cheap, yet long-lasting products. Exporters, however, mustdemonstrate their interest to importers directly, e.g.visits to Europe, regular information about productconditions, warnings about possible climatic problems.

Opportunities• Specialty / novelty products.• Tropical flowers.• Summer flowers.• Prepared (dried or dyed) cut flowers.• Foliage: small-leafed foliage, novelties.• Off season.

Threats• Poor image of LDC sources (logistical problems, lack

of professionalism, poor commercial attitude).• Political instability in some developing countries.

46

6 EXPORTS

Exports of cut flowers and foliage by the EU aredominated by fresh cut flowers, which account for 96percent of the total exports of the products covered inthis survey. In terms of value, cut flower and foliageexports showed an increase of 10 percent between 1999and 2000, after which decreased by 4 percent,amounting to almost € 2.6 billion in 2001. It should benoted that in terms of volume, exports fluctuatedstrongly from more than 1 million tonnes in 1999,decreasing to 610 thousand tonnes in 2000, remainingat roughly the same level in 2001.

The Netherlands dominated the EU trade in floriculturalproducts, accounting for 86 percent of total EU exportsof cut flowers and foliage in 2001.

Figure 6.1 illustrates the relative importance of the fivefresh cut flowers species, which are reported in Eurostattrade statistics. They accounted for 46 percent of totalfresh cut flowers exports. Note that Netherlands exportsof cut flowers and foliage showed the same pattern asthat of the EU. In 2001, the EU member states’ exportsof Rosa amounted to € 636 million, representing 25percent of all fresh cut flowers exports. The secondmost exported fresh cut flower is Dendranthema with anexport value of € 281 million.

The main export destinations were other EU memberstates. Intra-EU exports of cut flowers and foliageaccounted for 81 percent of total EU exports (€ 2.1billion). Germany was the major market, accounting for

Table 6.1 Exports of cut flowers and foliage by the EU, 1999-2001€ thousands / tonnes


Total 2,434,526 1,463,828 2,674,188 609,955 2,576,783 654,313

The Netherlands 2,075,207 1,359,570 2,294,221 509,123 2,221,100 502,943Italy 121,833 19,659 115,143 17,596 108,821 16,494Spain 96,601 56,874 99,521 55,482 90,915 105,706Belgium 52,203 9,729 62,258 10,991 57,145 10,013United Kingdom 24,882 4,798 31,868 5,037 35,908 7,883France 27,059 4,481 35,861 4,538 29,435 4,842Germany 25,677 5,321 24,636 5,017 24,360 4,761Denmark 6,183 843 6,226 958 4,086 627Austria 2,013 1,976 1,264 352 1,703 355Portugal 792 146 874 216 1,034 261Sweden 319 136 775 314 891 199Finland 727 83 522 79 593 61Ireland 77 19 461 95 297 72Luxembourg 312 38 162 18 248 25Greece 651 155 393 139 247 71


Other fresh cutflowers 50%

Rosa 25%

Dendranthema 11%

Dianthus 7%

Orchids 3%

Prepared cutflowers 2%

Foliage2% Gladioli

0%

Figure 6.1 EU exports of cut flowers and foliage,2001% of total value

Destinations of exports: Germany (28%), UK (16%),France (15%), USA (5%)Source: Eurostat (2002)

47

about € 720 million or 28 percent of the total EUexports. Other major destinations for EU exports wereUnited Kingdom, France, and Italy. The destinationsoutside the EU were USA and Switzerland.

Rosa remained the leading exported fresh cut flower in2001. Exports of Dendranthema and foliage witnessedstrong decreases in the same period. Dendranthemadeclined to € 252 thousand in 2001 (down 42%),foliage amounted to € 3.7 million (down 55%).

The UK, being the fifth EU leading exporter of cutflowers and foliage, showed increased exports between1999 and 2001, which was mainly represented by otherfresh cut flowers (mostly Narcissus) and prepared cutflowers. Unlike Germany, the UK mainly exportedprepared cut flowers (Figure 6.3). Exports of Rosafluctuated considerably from € 256 thousand in 1999,to € 1.6 million in 2000 and reaching € 744 thousandin 2001.

Rosa 50%


Dendranthema 1%

Dianthus 8%

Orchids 2%Prepared cutflowers 7%

Foliage15%

Gladioli0%

Figure 6.2 German exports of cut flowers and foliage, 2001% of total value

Destinations of exports: The Netherlands (24%), Austria(21%), Switzerland (13%), Norway (12%)Source: Eurostat (2002)


Dendranthema1%

Orchids 0%


Foliage 6%

Gladioli 0%

Rosa 2%

Dianthus 8%

Figure 6.3 UK exports of cut flowers and foliage,2001% of total value

Destinations of exports: The Netherlands (44%), Ireland(28%), Denmark (9%), France (5%)Source: Eurostat (2002)


Rosa 27%

Dendranthema 12%

Dianthus 4%Orchids 3%


Foliage1% Gladioli

0%

Figure 6.4 Netherlands exports of cut flowers and foliage, 2001% of total value

Destinations of exports: Germany (30%), UK (17%),France (15%), USA (5%)Source: Eurostat (2002)


Rosa 13%

Dendranthema 1%

Dianthus 7% Orchids 0%


Foliage17%

Gladioli 0%

Figure 6.5 French exports of cut flowers and foliage, 2001% of total value

Destinations of exports: The Netherlands (25%), USA(15%), Switzerland (15%), Italy (14%)Source: Eurostat (2002)

48

Netherlands exports of cut flowers and foliage showedthe same pattern as that of the EU: Rosa being thelargest product, followed by Dendranthema andDianthus. Exports from The Netherlands to Germanyamounted to € 668 million, about 30 percent of totalEU exports in 2001. Other main exports destinationswere UK, France, USA, and Italy.

France mainly exported foliage, accounting for 17percent of total cut flowers and foliage exports in 2001.Between 1999 and 2001, exports of Dianthus showed aconsiderable increase from € 495 thousand in 1999 toalmost € 2 million in 2001.

In contrast to other major exporting EU countries, Italymainly exported foliage, Dianthus, and other fresh cutflowers (mainly Gerbera, Lilium). Major exportdestinations were other European countries.

In terms of value, Spanish exports of cut flowers andfoliage remained stable between 1999 and 2001.However, in terms of volume, exports showed aconsiderable increase from 57 thousand tonnes in 1999to 106 thousand tonnes in 2001. This was mainly due anincrease of exports of Dianthus (up 78%). Spain mainlyexported Dianthus to The Netherlands and the UK.


Rosa 5%

Dendranthema 1%

Dianthus 10%


Foliage15%

Gladioli 0%

Figure 6.6 Italian exports of cut flowers and foliage, 2001% total value

Destinations of exports: Germany (34%), Switzerland(24%), The Netherlands (9%), France (8%)Source: Eurostat (2002)


Rosa 2%

Dendranthema 2%

Dianthus 75%

Orchids 0%

Prepared cut flowers 4%

Foliage 2%Gladioli 0%

Figure 6.7 Spanish exports of cut flowers and foliage, 2001% of total value

Destinations of exports: The Netherlands (37%), UK(33%), France (12%), Germany (5%)Source: Eurostat (2002)

49

7 TRADE STRUCTURE

7.1 EU trade channels for developing countries

In general, cut flowers and foliage from developingcountries enter the European market either 1) via one of the Netherlands’ auctions;2) via an agent;3) via an import wholesaler; or4) directly via a European retail chain.

1. AuctionsAuctions are wholesale markets created by the growersto market their products. The first flower auctions wereset up in the early 20th century in The Netherlands.Nowadays, there are about 10 flower auctions in Europe,4 of which are in The Netherlands (see Appendix 2.6list of main European wholesale markets and auctions).

Of the flower auctions in the EU, three are of particularinterest to exporters from developing countries. Thesethree auctions also have their own import departmentswho can facilitate foreign suppliers with necessarysupport when supplying the auction:• Aalsmeer Flower Auction (VBA): Internationally

oriented auction with an annual turnover of over 1.5billion euro in 2002

• FloraHolland: Internationally oriented auction with 5branches in Naaldwijk, Rijnsburg, Bleiswijk, Venlo,and Eelde in The Netherlands. Annual turnover 1.9billion euro in 2002.

• NBV-UGA: German auction with an annual turnoverof 574 million euro in 2002 (cut flowers and potplants).

The other auctions are mainly oriented towards themarketing of local production.

The Netherlands’ auctions in particular function as apivot around which the international floricultural traderevolves. Through their concentration of supply anddemand, they act as a price-setting mechanism for thetrade and have developed into a major centre for thedistribution of domestic and foreign grown products tothe European markets. It is important to understand theimportance of the Netherlands’ auctions as aninternational distribution hub for products fromdeveloping countries.

The Netherlands auctions now handle about handle 85percent of the Netherlands produce and 80 percent ofimported flowers. The auctions dominate the worldtrade and determine the prices, in particular in Europe,where they have a 30 to 40 percent market share in cutflowers.

The auctions in The Netherlands are co-operatives,owned by domestic growers and open to membershipfor all growers in the EU, but not yet for growersoutside the EU. Their main purpose is to handle producefrom their member growers. The Federation of DutchFlower Auctions (VBN) is the co-ordinating centre.

Figure 7.1 Distribution network of the cut flower trade in the European Union

grower / exporter

2 1 3 4

agent

wholesalerre-exports

other EU country

retailer

consumer

wholesaler

retailer

consumer

Netherlands auctions

50

The Netherlands’ wholesalers are the customer base ofthe auctions. They typically focus on exports and theirinfrastructure is developed to co-ordinate product flows,which are sold all-over Europe.

Besides the auctions in The Netherlands and the NBV-UGA auction in Germany, other countries alsotrade flowers at auctions. Although the importance ofthese auctions for international trade is small comparedto the Netherlands auctions, some of them are gainingin significance.

Floricultural products submitted to the auctions are soldeither by means of the auction clock or through theIntermediary Office:

In 2002, the total turnover of cut flowers at theNetherlands auctions amounted to € 2.4 billion; anincrease of 4.1% compared to the year 2001. Supplyremained almost at the same level (+0.1%) as in 2001.The 11.8 billion stems supplied were traded at an

average price of € 0.21; an increase of 1 cent. The shareof cut flowers in the total turnover of the auctions was66.8% this year; a decrease of 1% compared to the year2001.

Tele Flower Auction (TFA)In March 1995, East African Flowers, the largest privateimporter of non-EU produce in The Netherlands,decided to establish a private auction focusing onimports from outside Europe (Tele Flower Auction).TFA was one of the first computerised auctions,without the physical transfer of flowers past the auctionclock. The auctioning is done through a computernetwork and the buyers are selected amongst the 100biggest Netherlands wholesalers. TFA does not imposeany quantitative restrictions on imports and it buys on acontract basis. Supply criteria and commissions arecomparable with the traditional auctions.

Since the starting period, 1995-1996, TFA hascontinued to grow. Top growers located in the countriesKenya, Uganda, Tanzania, Zimbabwe and Zambiachannelled their products (mainly Rosa, Dianthus andStatice) through auctioning at the TFA on the Europeanmarket. TFA added various Rosa varieties grown by topNetherlands growers to its range of African Rosa.

For more detailed information on the TFA, please referto the Internet-site: http://www.tfa.nl.

2. AgentsHandling imports has never been a core-businessfunction of auctions. While the import departments ofthe auctions have invested in import-relatedinfrastructure such as roller beds for airplane pallets,and have established satellite offices in supplyingcountries, the majority of auctions rely on externalagents to perform import functions (cutting, re-hydrating and re-packing flowers).

The Auction Clock

Upon submission to the auctions for sale, each batch ofproduct is examined by auction inspectors with respect tomaturity, length, and number of buds. They sort theflowers according to various grade classificationstandards. During the process, the flowers are checkedfor diseases and pests, for colour deviations and leafyellowing. All the information is stored in the auctioncomputer, and the products are cleared for auctioning.Flower trolleys move the product for sale past the auctionclock. Besides the computer, in which the information isstored, the auctioneer again describes the product (nameof the grower, species, quality class and grading code),and then the single hand of the clock descends until aprospective buyer, by pushing a button, halts the hands ofthe clock. The price then indicated is the purchase price.

After the buying procedure, the products are distributedto the buyers, who have rented packaging space at theauction. The whole process at the auction complex ishighly automated, from handling and storage of goodsbefore auction, to administration of the sale and deliveryto the buyer’s office, and packaging for transport in thepacking room.

The Intermediary Office

(‘Bemiddelingsbureau’ in Dutch)The Intermediary Office of the auction acts as anintermediary between seller and buyer on a commissionbasis. Its importance with respect to the sales of cutflowers is still small, but growing. In 2002, it was around8 percent.

Table 7.1 Turnover of VBN-auctions concerning cut flowers (including auctioned imports),2000-2002in € million

2000 2001 2002

FloraHolland 1,290 1,284 1,334VBA 981 977 1,021Oost Nederland 20 21 22Vleuten 8 17 17

Total 2,310 2,299 2,394

Source: VBN (2003)

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The growing role of agents in the supply chain islargely a product of the increasing sophistication ofpacking requirements. Agents play an important role intransferring flowers from air-transport-based to auction-based packaging and exporters who lack localrepresentatives in the Netherlands are dependent onthese services.

In recent years, agents have moved away from simplecommodity handling towards providing a wider array ofservices including consultancy, product and marketinginformation, and import materials. These services haveallowed exporters to achieve higher levels ofconsistency and quality, and have enhanced theircompetitiveness in the European market.

Agents have adopted a range of “new” competencies:purchasing and consolidating flowers in suppliercountries; becoming financially integrated into flowerfarms; and providing a wide range of marketinginformation on consumption trends, environmentalprogrammes and quality-related aspects of distribution.In addition, agents are diverting growing volumes offlowers to supermarket chains, Dutch wholesalers, andforeign importers. These capabilities have made agentsvery valuable to off-auction clients, as well as posing agrowing threat to the market share of the auctions.

3. Importing wholesalerBesides the possibility of supplying the Europeanmarket via the auctions, with or without the help ofagents, an exporter can also sell directly to Europeanimporting wholesalers. When imported flowers are soldvia the Netherlands auctions, handling costs can be high(20-25 percent of the auction revenue). When flowersare sent directly to other European countries, prices arenot augmented by such costs.

In addition to advising on the best method of selling theproduct, the importing wholesaler acts as a valuablelink with the market place, providing the foreignexporter with information about the required qualitystandards, packaging, presentation and assortment. He can also help the foreign exporter to obtain suitabletechnical advice on the growing of flowers and theyoung plant material. Furthermore, he can give adviceregarding transportation, handling and care. Note thatmany importing wholesalers also function as exportwholesalers or wholesalers.

There is a substantial difference between Europe-basedimporting wholesalers and importing companies likeFlorimex. Florimex is a typical import company thatdeveloped an infrastructure to co-ordinate productflows, in order to pull the flowers into the market. To establish this, Florimex built up a global branch ofimport companies.

4. Retail chainsThere is a clear trend that European retail chains(supermarket chains, do-it-yourself stores or gardencentres) increasingly purchase large volumes of flowersdirectly from growers, co-ordinate logistics acrossdiverse markets, thus bypassing the auctions altogether.

The expansion of direct cut flower sales reflectssupermarkets initiatives to broaden their productportfolios. Particularly, UK-based supermarkets havemadé a strategic decision about their market orientation,and moved away from previous reliance on price-basedfactors towards strategies based on quality and service.This has resulted in supermarkets investing in supplychain relationships and pushing value-added activitiesdown the chain towards exporters.

The best examples of this development are found inKenya, where larger growers have tailored theiroperations to sell directly to retail outlets in Europe.Being able to supply this chain depends on the abilityof the grower to comply with specific requirements ofthese retail chains (MPS, EUREPGAP).

The entry of the supermarkets offers the prospect ofsubstantial market growth. However, their qualityspecifications are high and they are primarily interestedin sourcing from large suppliers who can offer bothsingle-species bunches and mixed bouquets.

7.2 Wholesale level

Local wholesalers and export wholesalers are vital linksin the chain from growers to consumers. Wholesalersarrange for the products to be carried to their (foreignbased) clients. When the flowers are delivered to awholesaler, the products are prepared for furthershipping in the right form, quantity and packaging.Domestic destinations are the retailers, whereas exportwholesalers (re-)export their cut flowers and foliage towholesalers and retailers abroad.

The importance of deliveries by export wholesalers toretailers abroad is increasing. In fact, some exportwholesalers (especially in The Netherlands) have takenover the distribution function from wholesalers in otherEuropean countries, by selling directly to retailers (theso-called “Flying Dutchmen”). Several multinationalflower-trading companies have established their ownwholesale companies in various countries.

The big (export) wholesalers send their purchasingagents to all important flower auctions in order to buythe best products at the best prices. Wholesalerswanting to buy products at auctions where they do nothave a purchasing agent, often use so-calledcommissioners. In this way, they are able to offer abroad assortment to their clients.

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The wholesale trade is becoming more concentrated. InEurope, this strong tendency towards concentration andoperating with ‘short communication lines’ is clearlyrecognisable. The fastest growing companies are theones working with supermarkets. The method of directtrading between producers/exporters and the retailer is,in some European countries, leading to the erosion ofthe function of the specialised importers. This leads tothose same importers functioning partly as logisticsservice providers, quality inspectors and co-ordinatorsof the stream of flowers. In general, the importers stillplay an individual and specific role in the chain,because they have a strong relationship with theirsuppliers and because they play an indispensable role asassemblers of a broad assortment of products.

In some EU countries, traditional wholesale marketsstill play a role in the distribution chain. In thesephysical markets, growers and wholesalers sell theirproduce to local retailers, mainly specialised flowershops and smaller garden centres. Most wholesalemarkets are located near bigger cities.

A list of the main European wholesale markets is givenin Appendix 2.6.

E-CommerceElectronic commerce is increasing in importance in theEuropean floricultural business. Over the past fiveyears, all kinds of initiatives could be seen. Most activities are directed to improving informationtransfer and trade (between growers, auction,wholesaler and retailer).

In 1995, Tele Flower Auction (TFA) was one of the firstelectronic trade systems seen in the floricultural trade.Another early initiative by the Container Centralen(Denmark and The Netherlands) was DistributedDatanet (DD), a network used for sending messagesand trade information. Since then several parties haveset up other systems including FlorEcom (Netherlandselectronic order system, initiative of auctions andwholesalers), FlowerAccess (order system for retailers,set up at Flower Auction Aalsmeer), etc.

7.3 Retail level

Traditional florists still dominate the retail distributionof flowers in most EU countries. However, the shares ofnurseries, garden centres and market and street vendorsare also important. The importance of the supermarket,at the retail level of the distribution chain, has beengrowing for a number of years.

There is considerable diversity in the flower assortmentoffered by the various types of retail outlets. In general,florists offer a wide assortment of flowers, whereas theassortment sold by market and street vendors is narrower.

As a general rule, florists offer flowers of higherquality, a broader assortment, and use more attractivepresentation than the other retail outlets. In addition toproviding services (such as arranging a bouquet,fashioning wreaths and floral decorations, anddelivery), florists offer information and advice abouttheir products to consumers. They are usually moreprepared to accept novelties than other retail outlets.

As in market and street selling, a high proportion offlower sales is generated by impulse purchases. The presence of flowers, at strategic locations and atlow prices, offers customers a good opportunity to buyon impulse for use in their own home.

The flower assortment used to be very narrow insupermarket departments. However, the quality andassortment of flowers offered has improvedconsiderably. Most supermarkets have self-service sales.Ready-made bunches of flowers are of particularimportance for supermarkets. Supermarket sales arehighest per capita in Ireland, Denmark and Switzerlandbut are growing elsewhere.

The Netherlands The retail trade in The Netherlands is characterised by awide variety of outlets. The most important retailchannel is represented by the florists, accounting for 47percent of the total Netherlands sales of cut flowers in2000. As also shown in the table, supermarkets becomemore important during the years under review.

Florists are followed in ranking by street and marketsales outlets. They buy their products partly direct at theauctions. Street and market sales are characterised bythe supply of more traditional cut flowers by stem or inbouquets, with simple packaging and low prices. Due tolow overheads, street and market vendors are able totrade at lower prices than florists. They are also oftensituated at prime sites, thereby encouraging impulsebuying. Street and market vendors target consumerswho buy flowers for their own use.

Table 7.2 Share of retail,% of total sales, 1999-2001

1999 2000 2001

Florists 48 47 46Street and markets 26 27 27Supermarkets 18 18 19Garden centres 3 3 3Others 5 5 5

Total 100 100 100

Source: GfK, Horticulture Commodity Board (2003)

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GermanyIn Germany, the major volume of imported cut flowersand foliage is distributed either by German wholesalersor by Netherlands export wholesalers to the retail trade.The major German (import) wholesalers are largeenterprises and mostly situated near Frankfurt, due tothe importance of its airport in the physical distributionof flowers. Only a small percentage is sold at auctions.However, the producers’ association NBV+UGA isquite important in marketing, since it has developedauctions where cut flowers are sold by a system of cash-and-carry.

The predominance of wholesalers is noteworthy. They are well organised and well informed and they are mainly focused on imports. Exporters should seeklong-term business relationships with serious andqualified German importer wholesalers.

Distribution at the retail level is characterised by thepredominance of the florists significant. In general,they are all independent retailers who purchase theirproducts from the wholesale market and from domesticproducers. With a market share of only 10 percent, theimportance of supermarket chains like Rewe, Metro,Edeka and Aldi is still modest.

United KingdomNo clear distribution chain for cut flowers exists in theUnited Kingdom. At the wholesale level, flowers aretraded through import wholesalers or wholesalemarkets. The larger supermarket chains, due to theirenormous buying power, can purchase their suppliesdirectly from growers in Europe and outside. This hascaused changes in the distribution chain.

At the retail level, two distribution outlets for flowersdominate: supermarkets and florists. Florists are facinga decreasing market share. In 2001, this retail typeaccounted for about 30 percent and are therefore less

dominant than in most other European countries.Nevertheless, as the total UK consumption showed astrong increase, the florists still managed to expandtheir sales in absolute terms. Then again, supermarketchains are growing faster. Supermarkets (Tesco,Sainsbury, Safeway, Asda, Marks & Spencer) are theflorist’s biggest competitors and their market shareincreases structurally. The share of the greengrocers,and street & market stalls is declining.

FranceFrench distribution of cut flowers and foliage ischaracterised by the importance of short channels, fromproducer to retailer or consumer. Only a small part ishandled by wholesalers, which are few in number butlarge in size. A considerable part of the import fromdeveloping countries is handled by them or by exportwholesalers from The Netherlands.

There were about 550 wholesalers in France, of whichabout 350 are located outside a wholesale market and200 in a wholesale market. In France, there are twodifferent kind of wholesale markets: the MPI (MarchéPrivés Interproffessionels) and the MIN (Marchésd’Intérêts Nationaux). The first mentioned are private,while the latter are governmental markets. All producersare allowed to register for both markets.

The leading wholesale market is Rungis, which mainlysupplies retailers in Paris and the large Ile de Franceregion. Besides the markets supplying retailers, thereare also two main dispatch markets situated in southernFrance (at Nice and Hyères-Ollioules) which marketregional produce to both wholesalers and retailers.Some of the wholesalers at these two markets importproducts to complement their assortment.

The larger part of cut flower purchases is made attraditional flower shops. However, supermarkets and


1998 1999 2000

Florists 63 64 63Growers 13 13 13Supermarkets 11 10 10Street and market 9 8 8Garden centres 2 2 3Others 2 3 3

Total 100 100 100

Source: GfK, Horticulture Commodity Board (2003)


1999 2000 2001

Supermarket 41 45 51Florists 34 36 30Street and market 9 7 6Groceries 4 3 3Garden centres / Growers 5 3 3Others 7 5 7

Total 100 100 100

Source: Taylor Nelson UK, Horticulture CommodityBoard (2003)

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garden centres are also important retail outlets inFrance.

ItalyItaly has a traditional distribution circuit dominated byflorists. Domestic growers must market their productsthemselves to the wholesalers and retailers, andsometimes even to the consumer, hereby competingwith each other. Production co-operatives, however, areplaying an increasingly important role in buying, sellingand importing to complete their product range offlowers.

Italian dispatch markets, where growers offer theirproduce to the wholesalers, are mainly situated in theproduction areas. Those specialised in cut flowers are inSan Remo, Pescia, Ercolano, Albenga, Viareggio, Lecceand Vittoria. The other wholesale markets are situatedin the major cities (Genoa, Milan, Messina, Rome andTurin), where retailers buy flowers from wholesalers.

At the retail level the main share is traded by florists.There are also many street vendors, aiming particularlyat the impulse market. This group is followed by marketstalls, garden centres and supermarkets, which are ofminor importance in Italy.


2000 2001 2002

Florists 72 67 68Garden centres 3 4 13Supermarket 12 13 10Street and market 8 10 3Growers 3 4 3Others 2 2 2

Total 100 100 100

Source: Oniflhor (2003)


2000 2001

Florists 74 73Street markets 17 19Garden centres/growers 5 3Supermarkets 2 4Others 1

Total 100 100

Source: GfK

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8 PRICES

8.1 Price developments

The enormous variations in species, varieties, lengthsand qualities of cut flowers makes it difficult to provideinformation on prices. Furthermore, some of the mainholidays and festivals strongly influence the prices.

Factors influencing producer prices:

• Seasonality• Variety• Size of buds• Stage of opening of buds• Uniformity of bud-opening stage• Colour-brightness of flower• Bud damage• Uniformity of stem length per bunch• Uniformity of bud size per bunch• Consistency within and between consignments• Colour and quantity of leaf• Freedom from chemical deposits and water-marking• Freedom from pests and diseases• Packaging• Overall appearances• Temperature of flowers on arrival• Vase life• Regularity of consignments• Buyer’s previous experience of suppliers

After many years of an under-supplied market, worldcut flower supply, especially for the most commonvarieties, has now expanded to match or exceed whathas been relatively slow growth in demand during thepast few years. The price decline has been morepronounced for roses than for any other major type offlowers. In fact, prices for several relatively minorflower varieties have increased in recent years.

Table 8.1 on the next page gives prices of a selection ofproducts and varieties at the Netherlands auctions for2001 and 2002. Considering their market share, theseprices can be considered to be indicative for price levelsin Europe. Note that these are average annual prices andthat prices fluctuate throughout the year. Furthermore,varieties are often grouped together and statistics do notspecify the differences in size and quality.

Owing to the nature of supply and demand, short-termprice fluctuations occur frequently at the auctions.These intra-day price fluctuations can be considerable.Climatic conditions can also have a strong impact onshort-term price levels.

Furthermore, a clear seasonal price pattern exists.

Prices are at their lowest during the summer period,when production in the EU reaches its peak, andhighest in November and December.

On average, imported products sell for lower prices thanNetherlands products. The main reasons are the higherquality of the Netherlands products and their widerrange, which comprises a number of specialised, highpriced products.

See also Section 10.5 which explains how to analyse theprice structure in the international flower business.

8.2 Sources of price information

Information on EU wholesale prices for flowers can beobtained from a number of sources. For example, ITC(International Trade Centre) in Geneva collects pricesat the wholesale level on EU markets and publishes aweekly bulletin. Another important source ofinformation is VBN (Federation of Netherlands FlowerAuctions), which publishes the sales statistics (volumeand prices) for all the Netherlands auctions. TheGerman auction NBV-UGA also publishes its prices.

Sources for price information:

� ITC’s Market News Service (MNS)Information on prices of flowers is available on aweekly basis. Internetsite: http://www.intracen.org

� Federation of Dutch Flower Auctions (VBN)The VBN publishes prices of products traded at theNetherlands auctions. Internetsite: http://www.vbn.nl

� Auction NBV/UGA (Germany)Prices at the German NBV and UGA auctions. Internetsite: http://www.nbv-uga.de

� International Association of HoriculturalProducers (AIPH)Information on prices and trends for plants can befound in the statistical yearbook.

� Internet sites- http://www.agriholland.nl- http://www.florvertical.com (Information onNetherlands and Spanish wholesale prices for Netherlands auctions and Spanish wholesale markets: Chipiona and Mercat de Flor i Planta de Catalunya)

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Table 8.1 Average annual prices of selected products at Netherlands’ auctions, 2001-2002in eurocents, per stem

2002 2001 2002 2001Main products: Selected other:

Dendranthema Aconitum 25 24Spray Alstroemeria 16 15

Euro 22 24 Anthurium 65 62Euro Sunny 22 22 Aster 20 20Reagan Sunny 20 18 Carthamus tinctorius 13 14Reagan White 20 18 Celosia argentea 29 25

Santini 17 15 Chamelaucium uncinatum 16 15Dianthus Cymbidium (big-budded) 305 326

Standard 15 14 Cymbidium (small-budded) 125 139Desio 11 13 Eryngium 28 28

Spray 10 9 Eucalyptus 28 34Westdiamond 8 8 Euphorbia 28 26

Gypsophila Eustoma russellianum 28 29Million Star 21 23 Gladiolus 13 12Perfecta 20 21 Heliconia 108 98Hypericum Liatris 16 15Excellent Flair 16 16 Limonium sinuatum 19 20Pinky Flair 25 22 Nerine 25 23

Lilium Ornithogalum 16 15Asiatic Group 30 26 Paphiopedilum 74 81Oriental Group 52 58 Phalaenopsis 49 41Longiflorum Group 40 37 Phlox 15 15

Rosa Protea 109 109Large-budded 29 27 Ranunculus 14 15

Akito 25 26 Ruscus 9 9First Red 27 28 Solidago 13 13Grand Prix 50 43 Tanacetum 17 16Passion 36 36 Trachelium caeruleum 22 23Red Berlin 31 33 Veronica 14 13Sphinx 25 27 Zantedeschia 54 51

Small-budded 13 13Black Beauty 11 14Escimo 11 11Frisco 12 12Golden Gate 14 15Lambada 10 10Sacha 13 14

Spray 21 19Diadeem 14 15

Source: VBN (2003), Vakblad voor de Bloemisterij (2003)

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Since CBI’s AccessGuide is an important instrumentproviding the larger part of the information describedbelow, this chapter will only shortly deal with therelevant issues within this subject. References torelevant information sources will be made.

9.1 Non-tariff trade barriers

The trade and export of flowers and plants can be acomplex business. In this section you will find aselection of the most important issues. It is veryimportant that legislative requirements (i.e. productlegislation) in the EU are taken into account. For flowers and plants phytosanitary issues, i.e.regulations intended to prevent the introduction of plantpests and diseases which are not present in the EU, areimportant. Moreover, market parties are developingenvironmental as well as social standards connected tothe conditions in which plants and flowers are grownand harvested.

9.1.1 Relevant legislative requirementsIf exporting cut flowers to the European Union, anumber of legislative regulations are relevant:• Plant health control• CITES regulation• Breeders’ regulation

The following texts will deal briefly with theserequirements. For more detailed information on theserequirements, please refer to CBI’s AccessGuide.

Plant health (phytosanitary) legislationThe international trade in floricultural products bringswith it the risk of spreading diseases and pests. To keepthis risk to a limit, there are certain restrictions toimport of floricultural products into the EU. This legislation is laid down in Directive 2000/29/ECon protective measures against the introduction into theCommunity of organisms harmful to plants or plantproducts and against their spread within theCommunity. Directive 2000/29/EC replaces Directive77/93/EEC. The essence of the legislation is that themember states have to ban the introduction into theirterritory of: • harmful organisms, • plants and plant products which are contaminated by

the relevant harmful organisms, • introduction into relevant protected zones of certain

harmful organisms and certain plants and plantproducts.

Harmful organisms can, for instance, relate to certaininsects, mites and nematodes, bacteria, fungi andviruses and virus-like organisms. The harmfulorganisms or the plants and plant products which arecontaminated with certain organisms are listed in theAnnexes to the Directive.

When floricultural products are imported in the EUfrom third countries (non-EU member states) and whenthese plants and plant products are listed in Annex II ofthe Directive, this implies that all batches will bechecked as to contamination by the harmful organisms.If the batch is contaminated, steps will be taken.

It is therefore vitally important for exporters indeveloping countries to be aware of the fact that certainharmful organisms which might be present on theirproduce are banned from introduction in the EU andthat certain product groups will always be inspectedregarding these organisms.

A phytosanitary certificate is an official documentissued by the exporting country, which attests that theshipment meets the phytosanitary regulations of theimporting country. Without such a certificate, yourshipment may be denied entry by the importing countryif it cannot meet that country’s specific plant healthimport regulations, including the requirement for aphytosanitary certificate.

9 EU MARKET REQUIREMENTS

AccessGuide

AccessGuide is CBI’s dedicated database on Europeannon-tariff trade barriers, specially developed forcompanies and business support organisations indeveloping countries. Registered companies andorganisations have unlimited access to AccessGuideinformation.

Exporters from developing countries wishing to penetratethe European Union should be aware of the manyrequirements of their trading partners and EUgovernments. Standards that are being developed throughlegislation, codes, markings, labels and certificates withrespect to environment, safety, health, labour conditionsand business ethics are gaining importance. Exportersneed to comply with legislation in the EU and also haveto be aware of the many market requirements.AccessGuide provides clear information on thesestandards and their implications.

For more information please refer towww.cbi.nl/accessguide.

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New measures for several cut flowers per 1 April 2003Due to the continuous interceptions of harmfulorganisms (especially Bemisia tabaci, Liriomyza spp.and Thrips palmi) in particular on cut flowers and leafyvegetables, the EU has recently decided to review theprovisions guarding against the introduction and spreadof these harmful organisms.

Since the 1st of April 2003, new measures apply to anumber of products (including several cut flowers) thatare exported to the EU. These measures are the same asthose for products such as Dendranthema or Dianthus.

The new requirements apply to the following products:• Cut flowers of Aster, Eryngium, Hypericum,

Lisianthus, Rosa and Trachelium from non-Europeancountries; and

• Parts of plants of Gypsophila and Solidago, and cutflowers of Orchidaceae, from all non-EU countries.

The new measures include an inspection by the officialservices of the exporting country prior to export, therequirement of a phytosanitary certificate and importinspection in the EU. As a rule, each consignment(100%) will be inspected upon arrival in the EU.However, in The Netherlands a system of ‘reducedchecks’ has been set up. For products with a lowphytosanitary risk (also depending on the country ororigin) a lower import inspection percentage will beused. Reduced checks apply to phytosanitary andidentity checks. The document check will be, however,carried out for each consignment.

For more detailed information about phytosanitaryregulations, contact the national phytosanitaryinspection service in the EU country market you wantto export to. In The Netherlands, this is the‘Plantenziektenkundige Dienst’, which is part of theMinistry of Agriculture (for contact details seeAppendix 2.7). A summary of the plant healthregulation in The Netherlands, which is based on thePlant Health Import Regulations Order 1993, can befound on the Internet site of the ‘PlantenziektenkundigeDienst’.

Useful Internet sites

Food and Veterinary Officewww.europa.eu.int/comm/dg24

Plantenziektenkundige Dienst(part of the Netherlands Ministry of Agriculture, NatureManagement and Fisheries)www.minlnv.nl/pd

CITES regulationsThe Convention on International Trade in EndangeredSpecies (CITES) lays down provisions for theprotection of endangered species of flora and faunathrough controls of the international trade in specimensof these species.

Note that according to CITES, the trade in productscontaining material from endangered species may beprohibited or restricted. This regulation is of specialimportance for flowers and plants, leather articles,handicrafts and jewellery. Check the CITES lists, tofind out whether or not your product contains materialfrom endangered species.

Two EU regulations, EU Council Regulation 338/97and UE Commission Regulation 939/97, have beenoperational since 1 June 1997. These regulations aim toapply CITES directly and uniformly throughout all EUmember states, especially to member states which arenot party to CITES (e.g. Ireland). The regulationsconsist of more powerful protection measures thanCITES describes, a greater number of species beinglisted as endangered, and certain species demandadditional import requirements.

More detailed information about CITES regulations andabout the lists of products placed in Appendix I, II andIII of this regulation, can be obtained at the CITESbureau’s in the EU member states or can be found onthe Internet-site of CITES. For more information aboutthe EU regulations on trade in endangered species,contact Environment Directorate General (DirectorateGeneral XI) of the Commission of the EuropeanCommunities. For contact details, please refer toAppendix 2.6.

Breeder’s RightsCreating and selecting new plant varieties diversifiesthe number of varieties offered on the market.Furthermore, the technical performance of varieties interms of yield, size, appearance, disease-resistance andadaptation to different agricultural and climaticconditions, is improved. In this respect, the work ofbreeding companies benefits the whole industry bymaking productive plant-based materials available toproducers and invigorating the market by constantlyintroducing new products. To defray the high costs ofplant breeding for floriculture, it is important for thebreeders to be compensated for their efforts throughroyalties and licences.

When an exporter would like to do business in a varietyto which a patent applies, he can only obtain youngplant material from the one company holding thepatent. Propagation of this plant material is alsoprohibited.

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In most developing countries with a floricultural sectorin its infant stage, however, the system of plantbreeders’ rights protection is still in its infant stage.In many of these countries, the actual enforcement isnot (yet) taking place. As a result, many growers andstarting exporters are hardly aware of breeders’ rightsand do not always pay license fees.

Nevertheless, the extension of breeder’s rights, orIntellectual Property Rights (IPR), to floriculturalvarieties is currently advancing in many developingcountries. The agreement on Trade Related Aspects ofIntellectual Property Rights (TRIPS) within the WorldTrade Organisation (WTO) has provided the impetus formany developing countries to adopt some form of plantvariety protection regime. Membership of the WTOrequires implementation of the TRIPS agreement,among other sub-agreements. Under this agreement,developing countries were meant to provide forpatenting of plants and/or a sui generis system ofprotection of plant varieties by the beginning of 2000 1.A common solution is to become signatory to the Unionfor the Protection of New Varieties of Plants (UPOV).

There are several protection frameworks for new plantvarieties:1. International level: UPOV (International Union for

the Protection of New Plant Varieties);2. European level: CPVO (Community Plant Variety

Office);3. Other countries: national patent registration offices.

Protection in countries member of UPOVUPOV is a group of countries which operates accordingto the principles of the Convention of the same name in1961 in Paris (revised in 1972, 1979 and 1991). Theregistered office of this inter-governmental organisationis in Geneva (Switzerland). The purpose of the UPOVConvention is to ensure that the member States of theUPOV acknowledge the achievements of breeders ofnew plant varieties, by making available to them anexclusive property rights, on the basis of a set ofuniform and clearly defined principles. The rights aregranted for a limited period of time (25 years) at theend of which varieties protected by them pass into thepublic domain.

The Convention therefore established four simpleprotection principles:1. The creator of a variety is the only person who can

ensure its multiplication;2. Protection applies to all parts of the plant, and to the

products derived from harvesting that plant;3. The breeder is fully entitled to authorise the

commercial use of all or part of his protected varietyin exchange for the payment of a fee or royalty; and

4. The notion of an essentially derivative variety (thebreeder is also protected against varieties too close tohis own).

For more detailed information, please refer to theInternet site: http://www.upov.int

Protection in EU countries (CPVO)The CPVO is a Community institution, seated in Angers(France) with independent legal status and has beenoperational since 27 April 1995. Protection to breedersis offered by a Community Plant Variety Right (CPVR),which is an industrial property right, like patents andcopyrights, but designed for plant varieties of whichmaterial is produced and commercialised.

Before April 1995, a breeder wanting to protect avariety throughout the European Union had to submitan application to each of the Member States. Since thenew Community Plan Variety protection system wasintroduced, the applicant needs to submit only oneapplication to obtain the same level of protection.Community plant variety protection always goes beyondnational protection (or a patent), so these forms ofprotection are never combined.

In order for a specific variety to be granted Communityprotection, a technical examination of its distinctness,uniformity and stability (DUS) must be carried out. Toavoid needless repetition, the CPVO can make use ofthe results of earlier DUS examinations carried out bythe examination offices of the Member States forofficial purposes. More information can be obtainedfrom CPVO in France or from the national institutionslike the Board for plant breeders’ rights in TheNetherlands (for addresses please see Appendix 2.7).

Other forms of protection: patents and trade marksTrade mark:Since 1 April 1994, breeders have been able to apply fora European trade mark. This can be used by the breederand by companies which pay for the use of licences.Trade marks can last longer than protection rights,which are limited to 25 years.

Licence agreements:A breeder can decide to entrust the production of aprotected variety to ‘licensed’ companies. He must thenentrust the marketing material to the multiplier. The multiplier is required to identify the plants by theirnames and trade marks. Licences can be exclusive ornon-exclusive. In the case of a non-exclusive licence,several companies can protect the variety.

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9.1.2 Quality and grading standardsProduct quality: EU regulation 316/68 and the VBNproduct specificationsThe quality of floricultural products demanded byEuropean traders and consumers is extremely high. EU regulation 316/68 specifies minimum requirementsfor fresh cut flowers (see Appendix 4.1). However, thequality standards of the Netherlands auctions give abetter impression of the general requirements of theEuropean floricultural trade.

The Netherlands growers and traders have madeagreements concerning the quality of the products thatare offered for sale at the auctions. These agreements,which relate to the products’ quality, their grade,packaging and the information provided on the product,have been laid down in the VBN product specifications.These product specifications contain the conditions forgrowers to participate in the sale process at theauctions. The Federation of Dutch Flower Auctions(VBN) issues norm sheets which specify the quality,packing and marking standards required for eachproduct.

The VBN product specifications are more detailed andspecific than those of other EU markets. If selling viaone of the Netherlands auctions, these standards are ofcourse compulsory. It is essential that prospectiveexporters are familiar with the specific standardsrequired for their products. An example of such a normsheet is given in the Appendix 4.2. Norm sheets forother products and more information on this topic arereadily available at the Internet site of the VBN:http://www.vbn.nl

Besides the auctions, importers of flowers into the EUalso have their unwritten quality standards, which alsoapply to imported flowers. Generally, the requirementsfrom the auctions are indicative for the quality that isdemanded by the European importers.

Quality management systems: ISO 9000 familyISO (International Organization for Standardization) isthe world’s largest developer of standards. The

International Standards which ISO develops arebecoming widely spread, also in the floricultural sector.

ISO 9001 is a quality assurance system. ISO involvesthe company describing the processes and proceduresused at the company. This highlights bottlenecks andareas for attention, as a result of which the quality ofthe products and the quality of the company itself areconstantly improved. ISO is an on going process, sincean annual assessment is made of whether a companystill complies with the guidelines. Participants whocomply with the requirements receive an ISO certificateand can use the ISO logo.“We doubt that suppliers from developing countries areprofessional enough” is an often heard statement madeby European wholesalers. Having obtained a qualitymanagement system like ISO 9001 can help yourcompany to remove the reservations of Europeanimporters in working together with you.

For more information on ISO, please refer tohttp://www.iso.org.

EuregapThe Euro-retailer Produce Working Group (EUREP),represents leading European food retailers such asAlbert Heijn (The Netherlands), Safeway and Tesco(both UK) and is aimed at promoting and encouragingbest agricultural practice in the farming of fruits andvegetables, in animal production, combinable crops andalso flowers and other ornaments. Therefore, EUREPdeveloped a framework for Good Agricultural Practice,called EUREPGAP. The main aim of the initiative is toensure food safety in the production chain.

EUREPGAP is a private standard and is applicablewithin Europe and worldwide. EUREP encourages theclose communication of all stakeholders by facilitatingthe communication between retailers, growers, suppliersand support organisations.

At present, this standard is only applicable when one issupplying to one of the supermarkets/retailers that arepart of the EUREP initiative.


AccesGuide (quality and grading standards) www.cbi.nl/accessguide/CITES www.cites.orgEnvironment Directorate General www.europa.eu.int/comm/dgs/environmentFood and Veterinary Office www.europa.eu.int/comm/dg24Plantenziektenkundige Dienst www.minlnv.nl/pd

(part of the Netherlands Ministry of Agriculture, Nature Management and Fisheries)

UPOV www.upov.intCPVO www.cpvo.fr

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This means that growers in developing countries shouldtake this standard seriously when they are supplying tothese parties. European food retailers will also demandthe EUREPGAP standards from their suppliers, possiblyincluding growers and exporters in developing countries.

For more detailed information on EUREPGAP, pleaserefer to CBI’s AccessGuide.

9.1.3 Trade related environmental, social and health & safety issues

Environmental, social, health and safety aspects play anincreasingly important role in the export of cut flowersand foliage to the European market. Environmentalaspects of products and production have become amajor issue in Europe in recent periods. Besidesgovernmental actions (legislation and regulation), anever stronger consumer movement is noticeable inespecially the northern parts of the EU (Scandinavia,Germany and The Netherlands). It is the objective ofthis section briefly to highlight several aspects whichcurrently play an important role in the EU. For moredetailed information, please refer to CBI’sAccessGuide.

Note that this Section, deals with issues which arevoluntary for exporters from developing countries andgive them a marketing edge over the competition.Exporters should consider some of these instruments asa management and marketing instrument to create adistinct profile for themselves in order to improve theirmarket position. The proliferation of labelling andcertification schemes contribute to market opportunitiesto exporters from developing countries.

Floriculture Environment Programme (MPS)MPS stands for Milieu Project Sierteelt, or ‘FloricultureEnvironmental Project’ and is both an environmentalregistration system and a certifying organisation. MPS has been promoting the use of environmentallysound methods in the cultivation of flowers and plantssince 1995. In 2002, MPS had 4,500 Netherlands’participants and 500 international participants in 29countries. It is now the most widely accepted measureof environmental accountability in production and MPShas certified approximately 85% of flowers in theNetherlands’ auctions.

The MPS project is an initiative of the Dutchfloricultural sector, including the flower auctions andseveral floricultural organisations. The MPS foundation’saim is to reduce the burden on the environment causedby the cultivation of flowers and plants. Growers whotake part in the MPS scheme register and lower the useof fertilisers, energy and waste. The lower theirconsumption figures, the higher the growers’classification in the MPS grading system. All nurseriesgrowing cut flowers, bulbous flowers, pot plants,

herbaceous perennials and nursery stock can participatein the MPS project as well as traders and florists.

Presently, MPS does not just assess and certify itsparticipants’ environmental performance. Since qualityand social aspects are becoming ever more important insustainable business practices, MPS has developed anumber of modules in this area, such as:• MPS A/B/C (Basic certification relating to the

environment.)• MPS-GAP (Certification suitable for supplying

supermarkets, with requirements with regard toGood Agricultural Practice.)

• MPS Socially Qualified (This certification, safetyand hygiene at a company.)

• MPS ISO 9001: 2000 (See 9.1.2)

In addition, MPS certifies for ISO 9001:2000, MPSTradeCert, Milieukeur for Flowers and Plants(Milieukeur only exists in Holland). MPS is accreditedfor MPS-A, -B, -C and Milieukeur for Flowers andPlants.

MPS and developing countriesMPS is a business-to-business label, meaning thatcommitments are made within the sector withoutconsumers’ knowledge. A company can join MPS andachieve the label when it has met requirements of theenvironmental audit. Regular checks will guarantee thata company still is engaged in the regime. MPS flowersand plants are priced the same, however, MPS productsare often of a better quality. It is quite difficult forexporters from developing countries to acquire the MPSlabel since audits are expensive and, furthermore, thelabel is created on the basis of quality requirementsfrom the Western countries. However, developingcountries should consider MPS label as a managementand marketing instrument.

For more detailed information, please refer to CBI’sAccessguide and MPS’s Internet site: http://www.st-mps.nl/

Flower Label Programme (FLP)The Flower Label Programme (FLP) was created in1998. Its founders are two major associationsrepresenting the flower trade in Germany, BGI (flowerimporters and wholesalers) and FDF (German florist’sassociation), and a number of human rights anddevelopment organisations. Products bearing the FLPlabel are mainly sold in participating German retailshops and can be recognised by consumers as such,contrary to business-to-business labels like MPS.

The Flower Label Program sets standards of humanrights and environmental protection for flower farms tofollow in the areas:

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• Freedom of association (the freedom for workers toform trade unions)

• Prohibition of child labour and forced labour • Proper employment contracts and above-average

social and working conditions • Health safeguards and a secure working environment • Responsible attitude towards natural resources and

the environment • Non-use of toxic pesticides and chemicals

Members also comply with internationally acceptedworkers’ rights as laid out by the International LabourOrganisation (ILO).

There are currently about 55 FLP members worldwide,(Kenya, Ecuador, Zimbabwe, Tanzania, South Africaand Colombia). Flower farms anywhere in the worldcan apply to have their farms inspected by independentsocial and environmental auditors and become FLPmembers -provided they comply with the FLP-standards.

For more detailed information, please refer to:http://www.flower-label-programm.org/

Fair Flowers & Plants (FFP)A broad alliance of trade unions, non governmentalorganisations (NGOs) and international flower tradeorganisations have recently reached agreement on thestandards and procedures to create a new internationalconsumer label for the flower sector. The label will becalled “Fair Flowers & Plants”.

The aim behind the new label is to improve the workingand living conditions of workers in the flower industryand to promote further protection of the environment.

This new international flower label stands forenvironmentally sustainable and socially responsiblefloricultural production. Its basis will be the ICC(International Code of Conduct for the Production ofCut flowers) including its Rules for Implementation andits Guidelines as well as the MPS qualificationstandards.

Other environmental and social programmes will begiven the opportunity to enter the new label after aprocess of negotiations and benchmarking.

The agreement recognises that: • Implementing the ICC and sustainability criteria

according to the MPS’ registration system,contributes to improving the living and workingconditions of workers in the floriculture industry aswell as protecting the environment world-wide.

• Co-operation to harmonise environmental and socialcertification is essential. For this reason, theinterested parties decided to develop a flower labelfor consumers, which will lay down requirements

throughout the chain (for trade as well as producers)on an international level. Once the requirements aremet, the FFP label may be attached to theseparticular products at the point of sale (florists).

• In order for environmentally- and sociallyresponsibly produced flowers to play a significantrole in the flower trade, it is essential to havesufficient supply and range. This can only beachieved through co-operation.

• Trade Unions, NGOs and the workers themselveswill have an important role in monitoring the criteriaand its implementation.

• Union Fleurs, the umbrella organisation in thefloricultural industry, will co-ordinate the marketing,on the trade side, for the whole flower industry.

There are still a few technical and financial matters tobe resolved before the structure to implement the newlabel is finalised. No decision has yet been takenregarding the exact date on which it will be introducedinto the markets. The introduction is largely dependenton whether sufficient floriculture companies world-wide apply to participate in the concept to supplyproduct for sale under the FFP label.

ISO 14001The purpose of the ISO 14001 standard is essentially toenable the international recognition of an individualcompany’s environmental management system. Therelevance of the standard for the future can be clearlyseen by following the development and uptake of theISO 9001 and ISO 9002 quality standard. Althoughvoluntary, customer pressure is resulting in the ISO9001 an IS0 9002 quality standard becomingincreasingly necessary to do business around the world.Similarly, the ISO 14001 environmental managementstandard may become a de facto requirement for beingable to compete in many regions of the globalmarketplace. Check the ISO Internet site for moreinformation or also refer to CBI’s Accessguide.

An other environmental management standard that isalso operational in the European Union is theEnvironmental Management and Audit Scheme(EMAS). This scheme was set up by the ComitéEuropéen de Normalisation (CEN) in 1993. However, possibility of EMAS-registration is onlypossible for EU based businesses. Presently, there aremore than 8,000 companies world-wide ISO 14001certified. As comparison, some 2,000 companies areEMAS verified.

Codes of conduct and certification systems indeveloping countriesBesides the ones already described, there are alsocertification systems and codes of conduct developed inflower exporting countries. Examples of these are thestandards of the Kenya Flower Council and the

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Florverde label. Florverde is the social andenvironmental programme of the Colombian flowersector. These two labels are becoming more and morerecognised in the international floricultural trade. Also in the European market, wholesalers are oftenaware of these labels. Although not a requirement fortrade, this type of local labels can positively influenceyour competitive position.

There are on going discussions between differentcertification systems to co-operate and join forces. An example is the talks between the Kenya FlowerCouncil and MPS.

For information on Florverde, please visitwww.colombiaflowers.comIn the case of the standards of the Kenya FlowerCouncil, refer to www.kenyaflowers.co.ke

9.1.4 Packaging and markingPackaging is used to protect the produce againstmechanical damage and to create a more favourablemicro climate. It is another essential factor indetermining the product’s quality, since it represents theproduct and protects it. However, according to the wayin which packaging is applied, it can also be a majorrisk to quality due to bruising and less than optimumconditions of temperature and humidity.

Different packaging materials are used, depending onthe type of produce and the function of protection andinfluence over the micro climate required. Packagingcan be divided into sleeves and wraps in paper orplastic materials, and external packaging in boxes up tothe sealed pallet. In case of exporting cut flowers andfoliage from developing countries, most products aredistributed in boxes. Cut flowers are often packed in aplastic or paper cover to protect them. The kind ofpackaging that is used is highly dependent on thevariety and the size of the product, the wishes of theimporter and the transport conditions.

The packaging of cut flowers has to satisfy a number ofconditions, mainly lying in the field of handling, andthe protection of the quality and presentation. EU regulation 802/71, a supplement to EU regulation316/68, specifies also minimum standards concerningpackaging and presentation. For more detailedinformation, please refer to the Appendix 4.1.

9.2 Tariffs and quotas

In the early 1970s most developed countries, includingthe European Community, designed a GeneralisedSystem of Preferences (GSP). The general idea of thissystem was to promote export and industrialisation indeveloping countries, by granting them preferentialaccess to the internal markets of developed countries.

Today, the GSP scheme of the European Unioncomprises of 179 countries, which receive some tradepreferences.

Next to the GSP scheme, the European Communitydesigned discriminatory preferential trading schemesfor a sub-set of GSP countries. In 1975, it signed theLomé Convention with a set of 77 African, Caribbeanand Pacific (ACP) countries. ‘Lomé’ meant to enhanceand narrow down trade preferences: it covered moreproduct groups; trade preferences were ‘deeper’, i.e.preference margins were larger than under GSP; and itgenerally focused on the less developed countries andformer colonies. These countries were granted furtherreduced tariffs or even duty free access on numerousexport products. At first glance, the Lomé Conventionseemed to offer much to the ACP countries.

The Lomé Convention was reviewed at the end of the1990s and replaced by the Cotonou Agreement in 2000.Most of the differences are of a political nature, e.g.more emphasis placed on good governance, democraticprinciples, human rights and social development. In order to boost economic performance, the CotonouAgreement focuses even more on (regional)development projects, such as infrastructure.Furthermore, special funds from the EU to promotesocial and economic development are subjected to lessrigid allocation systems, i.e. they can be adapted to thespecific institutional context of the beneficiary country.Trade policies, however, are hardly affected by theCotonou Agreement.

For the group of least developed countries (LDCs), theEU has specific preference schemes in place that aretechnically part of the GSP scheme. In March 2001, theGSP LDC scheme was replaced by the well-receivedEverything But Arms (EBA) initiative. The EBAinitiative grants 49 of the Least Developed Countriesduty-free access to the EU market for all products,except arms. Also, EBA slightly changes the conditionson rules of origin for LDCs.

In general, all goods entering the EU are subject toimport duties. External trade conditions in the EuropeanUnion are mostly determined by EU regulations. The level of the tariffs depends on country of origin andproduct.

If there is not a special trade agreement in force, thegeneral import tariff (conventional duty) applies. The following table presents the import duties for thecut flowers discussed in this study.

To apply for the GSP preferential tariff the evidence oforigin has to be submitted to the EU Customs by aCertificate of Origin, known as ‘Form A’ or ‘EUR 1’.This form must be completed by the exporter and

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subsequently be endorsed by the authorities of theexporting country which have been nominated by theEuropean Commission to issue ‘Form A’ or ‘EUR 1’.Two conditions attached to the application of the GSPpreferential tariff are:• only goods originating in a beneficiary country are

eligible for GSP treatment;• the goods must be transported directly from the

exporting country to the EU.

For a number of fresh cut flowers from Mexico, CzechRepublic, Cyprus, Jordan, Tunisia, PalestinianAdministrative Areas, Zambia and Israel tariffcontingent applies. At the moment that the total EUimports of the products exceed the contingent, thegeneral tariff applies again. Exporters are advised toinquire as to whether the contingent has reached itsmaximum and whether or not their products are subjectto duties.

Import duties are levied on the value of the products atthe moment of entrance into the European Union, i.e.Customs value (as established in the GATT valuation

code). In the case of an importer who buys FOB, theimport duty will be calculated on the basis of the FOBprice, increased by the shipment costs up to entranceinto the EU. An importer buying CFR or CIF will haveto pay import duties calculated based on the CFR/CIFprice, minus the shipment costs made within the EU.

In the case of selling imported cut flowers and foliagethrough the auctioning system, all costs have to be paidfrom the proceeds of the sale at the auction. Todetermine the price of the product at the moment ofentrance into the EU (the basis for calculating theimport duties), all costs made after entering the EU maybe subtracted from the auctioning price. Thus, tradingeither on the basis of FOB, CFR/CIF or by auctioningdoes not influence the import duties levied on theproducts. For more information about payment methodssee Section 13.4)

It is very important to realise that this information ismore complex than indicated above (because ofexceptions and special rules) and that this informationis subject to continuous changes (like e.g. the

Table 9.1 Import tariffs by product group

Product/HS Conventional Country groupcode import duty SPGA/ SPGL* EVA/EEA BCM/CY/FO/IL

(%) SPGE* RO/PHC/F LOMA/B/MCHMGB/MT/TR/SIXC/XL/XP

0603 10 Fresh cut flowers0603 10 10 10 Rosa (large) 12 0 6.8-8.5 0-2.4 00603 10 10 20 Rosa (small) 12 0 6.8-8.5 0-2.4 00603 10 20 10 Dianthus (one flower) 12 0 6.8-8.5 0-2.4 00603 10 20 20 Dianthus (many flowers) 12 0 6.8-8.5 0-2.4 00603 10 30 00 Orchids 12 0 0-4.2 0 00603 10 40 00 Gladiolus 12 0 0-8.5 0-2.4 00603 10 50 00 Dendranthema 12 0 0-8.5 0-2.4 00603 10 80 10 Anthurium 12 0 0-8.5 0-2.4 00603 10 80 30 Proteas 12 0 0-8.5 0-2.4 00603 10 80 90 Other fresh cut flowers 12 0 0-8.5 0-2.4 0

0603 90 Prepared cut flowers0603 90 00 10 Prepared cut flowers 101 0 2.9-8 0-3.5 0-7

(for the use of potpourri)0603 90 00 90 Other prepared cut flowers 10 0 2.9-8 0-3.5 0-7

(not for the use of potpourri)

0604 Foliage0604 99 10 00 Not further prepared than 0 0 0-8.7 0 0-4.3

dried0604 99 90 00 Other foliage 10.91 0 0-8.7 0 0-4.3

1 Preferential suspension = 0. This means that, with a special permit, the exporter will benefit from a preferential duty of 0 percent.Note: SPGA: excluding Myanmar, SPGL: excluding Chile and MoldaviaSource: Netherlands Customs (September 2003)

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exhaustion of quota). Therefore, this information canonly be considered as an indication for the actualsituation. For exact and up-to-date information onimport duties one should contact the local Chamber ofCommerce or Trade Promotion Office. Information canalso be obtained from the Chamber of Commerce inRotterdam, the European Commission or the Customsdepartment (see Appendix 2.7 for addresses). Anotheroption is to consult the Internet-site of the Netherlands

Customs where the General Customs Tariffs for allproducts are listed, including exceptions that are madefor import from specific countries. This information,written in the Netherlands language, is up-datedeveryday.

Value added taxes (VAT)Although fiscal borders between EU countries were, intheory, dominated from 1 January 1993 onwards, in

SPGAAfghanistan, Angola, Bangladesh, Burkina Faso, Burundi, Benin, Bhutan, Congo, Central African Republic, Cape Verde,Djibouti, Eritrea, Ethiopia, Gambia, Guinea, Equatorial Guinea, Guinea-Bissau, Haiti, Cambodia, Kiribati, Comoros (excl.Mayotte), Laos, Liberia, Lesotho, Madagascar, Mali, Myanmar, Mauritania, Maldives, Malawi, Mozambique, Niger, Nepal,Rwanda, Salomon Islands, Senegal, Sudan, Sierra Leone, Somalia, Sao Tomé & Principe, Chad, Togo, Tuvalu, Tanzania,Uganda, Vanuatu, Samoa, Yemen, Zambia.

SPGEBolivia, Colombia, Costa Rica, Ecuador, El Salvador, Honduras, Guatemala, Nicaragua, Pakistan, Panama, Peru, Venezuela.

SPGLUnited Arab Emirates, Antigua and Barbuda, Anguilla, Armenia, Netherlands Antilles, Antarctica, Argentina, American-Samoa,Aruba, Azerbaijan, Barbados, Bahrain, Bermuda, Brunei, Brazil, Bahamas, Bouvet Island, Botswana, Belarus, Belize, CocosIslands, Congo (Republic), Ivory Coast, Cook Islands, Chile, Cameroon, China, Cuba, Christmas Island, Cyprus, Dominica,Dominican Republic, Algeria, Egypt, Fiji, Falkland Islands, Micronesia, Gabon, Grenada, Georgia, Ghana, Gibraltar,Greenland, South Georgia and the South Sandwich Islands, Guam, Guyana, Heard and McDonald Islands, Indonesia, India,British Oceania, Iraq, Iran, Jamaica, Jordan, Kenya, Kyrgyz Republic, St. Kitts-Nevis, Kuwait, Cayman Islands, Kazakhstan,Lebanon, St. Lucia, Sri Lanka, Libya, Morocco, Moldavia, Marshall Islands, Mongolia, Macao, Montserrat, Mauritius, Mexico,Malaysia, Namibia, New Caledonia, Norfolk, Nigeria, Nauru, Niue Island, Oman, French Polynesia, Papua-New-Guinea,Philippines, Pakistan, St. Pierre and Miquelon, Pitcairn, Palau, Paraguay, Qatar, Russia, Saudi-Arabia, Seychelles, St. Helena,Senegal, Surinam, Syria, Swaziland, Turks & Caicos Islands, French Southern Areas, Thailand, Tajikistan, Tokelau Islands,Turkmenistan, Tunisia, Tonga, Trinidad and Tobago, Ukraine, Uruguay, Uzbekistan, St. Vincent (VC), British Virgin Islands,Virgin Islands (USA), Vietnam (VN), Wallis and Futuna Islands, Republic of South Africa, Zimbabwe.

LOMAAntigua en Barbuda, Angola, Barbados, Burkina Faso, Burundi, Benin, Bahamas, Botswana, Belize, Congo, South Africa,Ivory Coast, Cook Islands, Cameroon, Cape Verde, Djibouti, Dominica, Dominican Republic, Eritrea, Ethiopia, Fiji, FederalStates of Micronesia, Gabon, Grenada, Ghana, Gambia, Guinea, Equatorial-Guinea, Guinea-Bissau, Guyana, Haiti, Jamaica,Kenya, Kiribati, Comoren, St. Kitts and Nevis, St. Lucia, Liberia, Lesotho, Madagascar, Marshall Islands, Mali, Mauritania,Mauritius, Malawi, Mozambique, Namibia, Niger, Nigeria, Nauru, Niue Island, Papoea-New-Guinea, Palau, Rwanda, SalomonsIslands, Seychelles, Sudan, Sierra Leone, Senegal, Somalia, Suriname, Sao Tomé and Principe, Swaziland, Tsjaad, Togo, Tonga,Trinidad en Tobago, Tuvalu, Tanzania, Uganda, St Vincent, Vanuatu, Samoa, Zambia, Zimbabwe.

EVAIsrael, Turkey, CEE countries.

PHCCzech Republic, Hungary, Poland, Slovakia.

BCMHungary, Bosnia-Herzegovina.

MCHEgypt, Jordan, Lebanon, Syria.

MGBAlgeria, Morocco, Tunisia.

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practice, harmonisation of VAT (tax levied at consumersales’ level) rates has not yet been achieved. Many countries, especially those with significantdomestic production, are lobbying for a low VAT rateon ornamental horticultural products, similar to that orother agricultural products.

Taxing ornamental horticulture at a high rate can havesubstantial consequences for cut flower producers,when VAT drives prices up high enough to strangleconsumer demand. When France increased its VAT rate,it caused a 20 percent loss of sales. Lately, France hasgone back to the low rate of 5.5 percent.

Thus far, the previous part of this market survey – PartA – provided market information on the EU market forcut flowers and foliage and on the requirements formarket access. The next part – Part B – aims atassisting (potential) exporters in developing countries intheir decision-making process as to whether to export ornot.

Table 9.2 VAT rates applied to cut flowers and foliage in the EU, May 2003in %

Country VAT rate

Finland 22Sweden 25United-Kingdom 17.5Denmark 25The Netherlands 6 or 19 Belgium 6Germany 7Greece 8Spain 7France 5.5Ireland 12.5Italy 10Luxembourg 6Austria 10Portugal 12

Source: European Commission Directorate-GeneralTaxation and Customs Union (2003)


Import duties http://www.douane.nl/taric-nl

VAThttp://europa.eu.int/comm/taxation_customs/publications/info_doc/taxation/tva/taux_tva-2003-5-1_en.pdf

GSPhttp://europa.eu.int/comm/taxation_customs/customs/origin/gsp/contents.pdf

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Part BExport marketing guidelines:analysis and strategy

B

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How do you get involved in the internationalmarketplace? How much time and money will it take?Should you make exporting part of your business plan?These are common concerns of producers who realisethe importance of international trade, but are not sure ifthey are capable of exporting. That is what Part B is allabout: to help you evaluate whether to get involved ininternational business, and learn how to go aboutexporting.

Part B of this survey largely deals with the followingstrategic steps:1. External analysis (market audit, Chapter 10) and

internal analysis (company audit, Chapter 11);2. SWOT-analysis (Chapter 12);3. Decision making & formulation of objectives

(Chapter 12); and4. Elements which can be used as inputs for the Market

Entry Strategy (MES) and Export Marketing Plan(EMP) (Chapter 13).

The first Chapters 10, 11 and 12 aim at assistingpotential exporters in the decision-making processwhether or not to export. By matching externalopportunities (Chapter 10) and internal capabilities(Chapter 11), the exporter will be able to identifysuitable export products, target countries, marketsegments, and possible trade channels (Chapter 12).

Subsequently, Chapter 13 provides sector specificknowledge and sources to enable the exporter to furtherinvestigate what to export, to which markets, throughwhich channels, and at what prices. In other words,which export marketing actions must be undertaken topenetrate the EU market? The tools in Chapter 13should enable you to draw up the MES and EMP. Forgeneral information on export marketing, please refer toCBI’s “Export Planner”. For general information andhow to conduct market research, please refer to CBI’snew manual on market research.

Keep in mind that the export marketing process isintegrated; each individual part is inter-linked.

The information provided in the previous parts of thissurvey is an essential ingredient in conducting theanalysis and formulating a clearly targeted exportstrategy. Where applicable, reference will be made tothe relating sections in Parts A.

PART B

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The external analysis or market audit assists theexporter to identify market opportunities, suitable saleschannels and much more relevant information on themarket and the external environment.

10.1 Market developments and opportunities

As a first step towards the identification of the mostsuitable export markets, the exporter needs to researchthe importance of potential markets and understand theongoing developments that shape the European cutflower market structure. This should be done by meansof systematic market research, involving a preliminaryscreening of potential markets followed by a moredetailed assessment of the targeted markets.

Markets should be researched using primary as well as secondary data sources. Primary market researchconsists of a company collecting data directly from the foreign marketplace through interviews, surveys,and other direct contact with market participants. Ingeneral, European cut flower importers and agents arequite willing to give information on marketdevelopments.

Another potentially interesting source of information isthe auctions. Auctions with an import department haveso-called ‘area managers’, staff co-ordinating importsfrom different non-European regions. These areamanagers can give you useful insight into specificmarket developments for your products.

Note that there is no information available on specificvarieties imported into the various European countries.However, you could try to obtain import statistics ofindividual auctions to get an impression of the amountsof specific products that are imported.

Primary research has the advantage of being tailor-made to meet your company’s needs and provideanswers to specific questions, but this data collectioncan be very time-consuming and expensive.

In order to obtain a global scan of the market, mostcompanies make use of secondary data sources such astrade statistics, to focus their marketing efforts. This type of research is a valuable and relatively easyfirst step for a company to take. Specific marketdevelopments as described in Chapters 3, 4, 5 and 9 ofthis market survey for instance should be used as astarting point for your export market research.

Keep in mind that, already in the early stages of marketresearch, it is important to focus on your product group.There is no point in putting effort into the analysis of

the European market for all products if you arespecialised in a certain product.

Section 3.3 identifies a number of general consumptionpatterns and trends. It is important to assess theimplications and opportunities of important generaltrends for your products and situation.

Results of the research informs the company of thelargest markets for its product, niche markets, thefastest growing markets, market trends and outlook,market conditions and practices, and competitive firmsand products. Based on all the information, a companymust decide which markets are the most promising.

10 EXTERNAL ANALYSIS: MARKET AUDIT

Opportunities• Specialty / novelty (see Section 5.3)• Tropical flowers (see Section 5.3)• Summer flowers (see Section 5.3)• Prepared (dried or dyed) cut flowers (see Section 5.3)• Foliage: small-leafed foliage, novelties (see Section

5.3)• Off season (see Section 5.3)• Stable to declining production of cut flowers in

Europe (see Chapter 4).

Threats• Poor image of LDC sources (logistical problems, lack

of professionalism, poor commercial attitude) (seeSection 5.3)

• High-tech production methods (see Chapter 4).• European research (see Chapter 4).• Shift of production from northern European zones

towards Mediterranean region (see Chapter 4).• Political instability in some developing countries (see

Section 5.3).

Questions that need to be answered:

• Market size: What is the (estimated) market size foryour potential export products? Try first to focus onyour product group, then on your specific products.

• Market developments: How has the total marketvolume developed during the last 3-5 years?

• Imports: How have imports developed during the last3-5 years?

• Are importers and potential business partners in theEU interested in new suppliers of your particularproducts?

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Market access requirementsQuality standards and other non-tariff barriersSection 9.1 of this survey described a wide array ofnon-tariff barriers which could be applicable toexporters of cut flowers and foliage in developingcountries. It is important to determine which standardsand regulations apply to your situation. Not allstandards are compulsory or widely recognised by yourpotential customers.

For exporters, a compulsory regulation likephytosanitary regulations can embody a major obstacleto export to the European Union. Not only generalregulations which prohibit the import of certain speciesand soils, but also the costs of inspection at the bordercould represent a major barrier.

Keep in mind that regulations and standards arecontinuously changing. Therefore, we recommend thatyou to check the up-to-date situations with importers orthe relevant organisations.

Tariff barriersTwo different parties are involved in the payment ofCustoms duties: the party that is charged with the duties(i.e. the one that bears the financial burden) and theparty which actually makes the payment.

In the EU, importers must bear the financial burden ofCustoms duties. However, they settle the duties withtheir supplier, the exporter(s) in the case that the goodswere shipped on consignment conditions. The forwarding agents mostly handle all the importformalities, i.e. they collect the goods from the seaportor the airport, deal with the Customs formalities andpay the respective Customs duties on behalf, and foraccount of, the importer.

At present, in the case of exporting floriculturalproducts from most developing countries to the EU,import tariffs do not apply (see Section 9.2).

Where to find information?

� The market information described in Part A of thismarket survey can be very useful as a starting pointfor your export market research. Where applicable,the sources of this market information are alsomentioned in the specific chapters.

� For more general information, you can use the EUstatistics bureau Eurostat:http://europa.eu.int/comm/eurostat

� For a list of the European national trade statisticsbureaus, please refer to the Eurostat Internet site.

� Flower auctions provide information on sales offinished cut flowers and pot plants. A starting point isthe Internet site of the VBN: http://www.vbn.nl

� In some cases, trade associations are able to assistyou with more specific information on producttrends. For a list of trade associations please refer toAppendix 2.3.

� Trade pressUseful sources of information on marketdevelopments are (international) trade magazineswhich can be relevant for exporters who want todevelop a better insight into the EU markets. Some ofthe most interesting magazines for exporters of plantsand young plant material are:• Floraculture International (English, free

subscription)• Horticultura Internacional (Spanish)• Grower (English)• Taspo (German)• Lien Horticole (French)

Please refer to Appendix 2.5 for a more extensive list ofnames and addresses of publishers.

Opportunities• Certified products (see Section 9.1.3)• Quality management systems (see Section 9.1.2)

Threats• Phytosanitary requirements (see Section 9.1.1)• Breeder’s regulations (see Section 9.1.1)

Questions that an exporter should answer are:

• What quality standards are required by the Europeanmarket (VBN product specifications, importers)?

• To what degree do phytosanitary regulations apply tothe products? What are the costs of the phytosanitarychecks in the various European countries?

• Do breeders’ rights apply to your varieties (UPOV,CPVO)? Who is the owner of the varieties youproduce?

• What is the importance of environmentally soundproduction methods (MPS)?


� In Sections 9.1 of this survey, you can findinformation on quality standards; trade-relatedenvironmental, social and health & safety issues; andpackaging, marking and labelling. This section alsoprovides websites like CBI’s AccessGuide which canbe of assistance in obtaining product specificinformation.

� Other potentially useful information sources are theVBN, auctions, colleague exporters and Europeanimporters.

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10.2 Competitive analysis

In many cases, growers of cut flowers in developingcountries benefit from their climatic conditions. This isoften one of the most important factors that positivelydistinguishes your company from competitors in othercountries, particularly from competitors in Europe.Other positive factors are for example labour costs,costs of land, etc.

Needless to say, there are also factors which weakenyour competitive position. European companies, forinstance, have the advantage of being close to theircustomers which in general facilitates the marketing ofproducts and communication. Another importantdifference is the fact that cultivation technology andinput is readily available to European companies.

Growers of cut flowers in other developing countriesalso represent an important group of potentialcompetitors. You can find useful information in Chapter5 of Part A on product streams originating in thesecountries.

As an initial step towards understanding yourcompetition, you should prepare a list of all thecompetition and then pinpoint who your maincompetitors are. To learn more about competition youcan do a secondary research study and ask customersand suppliers for their opinions. You can also prepare alist of your main competitors’ strengths andweaknesses.

Due to its trade structure, the cut flower industry isrelatively open to new entrants and you should expectincreased competition. Constantly check withcustomers, suppliers and your competition to see if theyhave heard of any new businesses. These sources mayalso give you some insight in where and how thecompetition is selling their products. Which tradechannels are used by your competitors, and why?

Of course, trade shows can be helpful for making

contact with new customers and learning about marketdevelopments. They can however also be used to findout more about competition. If you sell cut flowers, takethe time to attend industry trade shows to see what yourcompetition is like.

10.3 Sales channel assessment

Having assessed the prospective markets and marketsegments, it is now also important to understand thetrade structure and supply chains supplying thesemarket segments. After the assessment of the exporter’scapabilities (next chapter), the exporter is able todetermine the most suitable sales channel.

The information provided in Chapter 7 of Part A shouldbe used as a starting point. As was explained in Chapter7, there are roughly four sales channels for exporters ofcut flowers to the European Union markets:1. via one of the auctions;2. via an agent;3. via an import wholesaler; or4. directly to a European retail chain.

The auctions can be an attractive sales channel becausethey can sell everything the you have to send during aspecified season, providing you can comply with thequality requirements. Furthermore, the price is made onan open market, payment is secure and reasonablyquick, there are no problems with cash collection andquality disputes, and air transport can be paid inadvance.

In general, auctions prefer to work with larger exportersof (mass-produced) flowers, like some of the larger

Questions that an exporter should answer are:

• Are there import restrictions that limit salesopportunities?

• Which import tariffs apply to your export products?


� Refer to Section 9.2, for information on import tariffsapplied. This section also provides Internet sites thatare helpful to find product specific information.

Opportunities• Increasing shortage and costs of land in main

European production areas

Threats• Customers more and more demand short-term

(immediate) deliveries (‘short lines’)

Important questions to be answered are:

• How many suppliers are currently active in themarket?

• Who are your main competitors? What are theirstrengths and weaknesses compared to yourcompany?

• To what degree is the sector in the target marketsupported by the local government?

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Kenyan exporters of Rosa. Nevertheless, if they are ableto regularly supply good and interesting products,medium-sized exporters can also supply the Europeanmarket through the auction system.

Both using agents and supplying directly to the auctionshave their advantages and disadvantages. While riskmanagement is the same between the two parties,payment terms and information provision are moreadvantageous to suppliers of the auction chain. In contrast to agents, who may delay payments for up toa month, auctions issue payments almost immediately.

In order to supply an auction, the exporter has to havean annual licence to supply specific varieties over aspecific period. He should have three flights per week,and must supply an agreed percentage of his output.Failure to comply can mean that the licence is notrenewed the following year.

Exporting directly to European wholesalers is suitablefor large as well as small and medium-sized exportingcompanies. In general, European import / wholesalecompanies, which offer a wide assortment of productsto their customers, mostly prefer to do business on anarm’s-length basis without long-term contracts.Importers are often on the lookout for specific productsto complete their assortment. As the products whichimporters are looking for can vary per company,information on the type of products and varieties canbest be obtained from these companies themselves.

When cut flowers are sent directly to the consumercountries rather than via the auctions they leave out anumber of links in the chain. This can save time andcosts of preparation for the auctions and onwardtransport. However, besides the advantages, it alsopresents problems of its own like the need to get all theboxes to the buyers and dealing with claims andcollecting the money.

Supplying large retail buyers often requires thatexporters have the capacity for volume growth, whichrequire significant investment in production and post-production facilities and operational quality systems(ISO). Often, retail buyers have specific wishes in thefield of packaging (marking, labelling).

10.4 Logistics

When transporting products overseas, the exporterideally looks for the fastest and most efficient mode(s)of transportation that will deliver the product in perfectcondition at the lowest possible costs. The actualselection will be a compromise among these factors.

As cut flowers are highly perishable products, almost allproducts are transported by air cargo.

Freight rates vary depending on the product beingshipped, its value, level of service provided, destination,weight, and seasonal variations in demand for cargospace. In the case of airfreight, the costs of a shipmentare mostly calculated on the actual weight (inkilograms).

Freight forwardersIt is a good idea to use a freight forwarder to arrangetransportation services on your behalf. They cansimplify the shipping process because they are familiarwith import and export regulations. It is important touse a forwarder who is experienced in handling cutflowers and foliage, as well as one who is experiencedin the destination country. Freight forwarders can alsoassist you in handling all the documents. Freightforwarders are cost effective to use, because they cannegotiate the best rates with shipping and airlines.

In Kenya, for example, approximately 90 percent of theflowers is handled by four specialised air-freightforwarders, which consolidate consignments fromvarious growers, palletise them and load them directlyonto commercial or charter airlines. Freight forwarderscheck quantities, varieties and temperatures, and keepflowers in a conditioned atmosphere until they are


• Which potential sales channels exist?• Which products do the different sales channels trade?• What are the most important requirements of the

identified sales channels? What are the conditions foran exporter to take part in a specific supply chain?- What quality standards do the sales channels

demand?- What kind of packaging is used in the various sales

channels?- What are the requirements concerning production

process (environmental, ISO, MPS, EUREP-GAP,etc.)?

� Refer to Chapter 7 for information on potential saleschannels.

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transported to the plane. They also facilitate Customsand inspection by the Kenya Plant Health InspectorateService (KEPHIS) or phytosanitary certificates. Smaller exporters, which cannot afford the services offreight forwarders, use the fresh produce cargo shed ofKenya Air-freight Handling Ltd. (a subsidiary of KenyaAirways). This cargo shed, however, does not provideadequate cold storage, resulting in higher flowertemperatures and lower quality.

In handling highly perishable products, maintaining acold chain is, of course, a major logistical issue. It determines for a large part the quality of the productas it arrives at the European retail shop. The saying is“one hour lost in departure to being refrigerated will beone day less for the sale in the destination”. Your freightforwarders must be able to manage the cold chain.

10.5 Price structure

As discussed in Chapter 8, which deals with pricedevelopments and sources of price information,different prices and margins apply throughout thevarious trade channels. It is therefore important to graspthe essence of the pricing structure as it also influencesthe price of your export product.

Figure 10.1 shows two examples of a supply chain andits price structure: Kenyan roses for the German marketexported via the Netherlands auctions and supplieddirectly to the German market (taken from a 2000Worldbank study2).

Many exporters consider marketing directly to theGerman market to be more attractive than via theNetherlands auctions. While the market price in Germanyis based on the auction price, German importers areusually able to undercut the margins of the auction exporters and offer overseas suppliershigher FOB prices. However, this price structure obscuresa few factors that work in favour of the auctions.

First, the auction price achieved can be up to 20 percenthigher for regular reliable overseas suppliers than forirregular suppliers of average quality flowers. This stemsfrom the fact that the auction system is a vehicle forobtaining premium prices, not for channelling poorquality.

Second, the costs of marketing (telephone and fax) andfinance (auction payments are weekly in contrast tomonthly payments of direct sales) are typically notincluded in an integrated cost price calculation.

Third, in contrast to direct sales, quality inspection andproduct rejection are transparent in auction sales. This also applies to market information, which is freelyprovided by the auction and subject to censorship byimporters.

Also refer to Section 13.3, which included informationon price setting.

2 Worldbank - “Equatorial Rose: The Kenyan-European Cut Flower Supply Chain”, 2000


• How often does the sales channel require delivery?What cycles of delivery does this channel require?

• What lot sizes does this sales channel demand?• What formalities does the sales channel require to be

handled by the exporter?

� Also refer to Chapter 7 for information on saleschannel requirements.

� Airfreight forwarders and air carriers are the bestsources for obtaining freight rates. There are alsocompanies that specialise in publishing air cargotariffs. These publishing companies charge a fee fortheir services.

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10.6 Product profiles

In this section, we give two examples of productprofiles: Rosa and Leatherleaf ferns. These standmodel for the product profiles the exporter should

Via Netherlands auction

Exporter FOB Nairobi € 0.08

Freight + Freight costs € 0.04forwarder

Auction C&F Auction € 0.12+ auction costs (15%) € 0.02

auction price € 0.14

Dutch + Dutch wholesale wholesaler margin (22%) € 0.03

German C&F German wholesaler wholesaler € 0.17

+ margin (20%) € 0.03

German + German retail retailer margin 100-200%

+ VAT 7%

Consumer Consumer Price € 0.44 - € 0.64

Direct to German market

Exporter FOB Nairobi € 0.09

Freight + Freight costs € 0.04forwarder

Importer C&F Auction € 0.13+ handling fee € 0.01

net sales € 0.14commission (15%) € 0.02

German C&F German wholesaler wholesaler € 0.16

+ margin (20%) € 0.03

German + German retail retailer margin 100-200%

+ VAT 7%

Consumer Consumer Price € 0.41 - € 0.60

Table 10. 1 Value chain analysis for exporting Kenyan roses to the German market

develop for his own (prospective) export products. Byconstructing an overview of the most import products,exporters are better able to determine which productsto export to the EU.

Product profile: Rosa

1. Product information: Rosa (rose)

main large-flowered varieties: small-flowered varieties:

European production Imports European production Imports1. Red Berlin 1. First Red 1. Sacha 1. Frisco2. Passion 2. Akito 2. Escimo 2. Escimo3. Sphinx 3. Inka 3. Frisco 3. Lambada4. First Red 4. Noblesse 4. Sunbeam 4. Golden Gate5. Grand Prix 5. Konfetti 5. Red Champ 5. Sacha

Source: VBN 2003

continued

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2. Market requirements:European quality standards: - standards of the Dutch auctions- standards of individual importers

Minimum labelling:- Identification (name and address) of the exporter

and/or packer- Nature of the produce (if not visible from outside)- Name of the variety- Origin of the produce- Commercial classification: class, size, minimum andmaximum lengths, number or net weight

Packaging: - The specific type of packaging is determined by the

importer. In general, packaging size specifications areinfluenced by EU pallet sizes and air-freight pallets andcontainers. In the Netherlands, cardboard boxes (‘A’boxes) with dimensions: 100 x 25-50 x 20-25 cm areusually used.

- After packaging, the stems should be secured tightly inthe box, either with a strong rubber band attached toplastic hooks pierced through the sides of the box, orwith a plastic foam covered wooden stick pressed ontop of the stems and nailed in place through the sides ofthe box.

- Import regulation: refer to Section 9.1.

3. Market structure:Consumption calendar:- All year round- Peaks in the flower sales during

public holidays

Average import price (2002, perstem): - Large-flowered (The Netherlands):€ 0.32

- Large-flowered (import): € 0.18- Small-flowered (The Netherlands):€ 0.17

- Small-flowered (import): € 0.11- Spray (The Netherlands): € 0.32- Spray (import): € 0.13

Market trends: - Still the number one cut flower in

most EU countries. No changeexpected in the near future

- Many EU consumers are gettingused to and appreciate large-flowered roses.

- Trendy colours are increasinglyimportant.

- More and more roses are suppliedby African growers, especiallysmall-flowered varieties.

4. Main suppliers:The leading supplyingcountries of roses areThe Netherlands,Kenya, Ecuador,Zimbabwe and Israel.

5. Quality improvement:

Harvesting: Roses are best cut in bud stage and opened after storage, transport or distribution.

Packaging: Measures to protect the product during transport.

Storage: Successful rose exports require an unbroken cool chain from grading to retail shop. This involves a cold store at the production site, with the capacity for pre-cooling produce after packing, refrigerated transportand access to cold storage at airports. The recommended storage temperature for roses is 2-4ºC.

Transport: Shipping without transfer is preferred.

In general: Experience, practical and theoretical knowledge are the most important factors to improve the quality.

continue

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Product profile: Leatherleaf Fern

1. Product information:Common name: Leatherleaf FernBotanical name: Rumohra adiantiformis (Dryopteris fern family)

Fronds (i.e., fern “leaves”) are triangular, coarsely toothed, 3-4 pinnate at base, 10-24 inches long. Sori are located on the dorsal (bottom) side of the fronds. Stipes (i.e., fern petioles or “stems”) are somewhat woody.

Availability: year roundDecorative life: 7-21 days

5. Quality:Harvesting: Leatherleaf ferns should be matured and hardened. Most leatherleaf is dipped after harvest in various mixtures ofwater, mineral oil and surfactant to both clean and, hopefully, extend subsequent vase life.

Packaging: Measures to protect the product during transport.

Storage: High relative humidity lasts up till 6 weeks if packed. Temperature between 2°C to 4°C is advised. Re-cut stemsfrequently.

Transport: Preferred shipping without transfer.

In general: Experience, practical and theoretical knowledge are the most important factors to improve the quality.

2. Market requirements:European quality standards:

Minimum labelling:- Identification (name and address) of the

exporter and/or packer- Nature of the produce (if not visiblefrom outside)- Name of the variety- Origin of the produce- Commercial classification: class, size,

minimum and maximum lengths,number or net weight

Packaging: - Special packaging requirements on

request of buyer or auction. Waxed orplastic coated cartons are not accepted.

Import regulation: Refer to Section 9.1.

3. Market structure:Consumption calendar:- All year round- Peaks in the flower sales during public

holidays

Average prices: - Price per stem is € 0.05

Market trends: - Leatherleaf ferns have been a leader for

over ten years. It is the archetypalfoliage, especially for supermarkets.

The market for foliage is increasinglydemanding quality. Foliage requires aminimum level of quality equivalent tothat of cut flowers and especially astandardisation of products and carefulpacking. The main criterion is vase life.

4. Main suppliers:The leading suppliers are CostaRica, Israel, Guatemala, SouthAfrica and USA.

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The internal analysis or company audit is a review ofthe company’s strength and weaknesses in terms of allcompany resources such as export marketingcapabilities, finance, personnel, internal organisation,management, infrastructure, etc. As a result of thisinternal analysis, you will be able to assess to whichextent your company is able to take advantage of theopportunities identified in the former chapter.Furthermore, with a thorough understanding of yourcompany’s unique capabilities, you are able to invest inopportunities that exploit your strengths.

11.1 Product range

A product range can consist of several product groups(range width), each with several different products(range depth). Again, one product can consist of severalvarieties (see example).

A supplier can only select a suitable business partnerwhen armed with correct information about the rangethat he or she is able to offer. A precise review of theproduct range, therefore, aims at matching products onoffer with market opportunities. Keep in mind thatvarieties are sometimes known under different tradenames overseas.

The next step is to review product characteristics of theproducts and varieties on offer.

11.2 Product standards, quality, and production capacity

A means to assess your company’s potential inexporting is by examining the unique or importantfeatures of your company and products. If thosefeatures are hard to duplicate abroad, then it is morelikely that you will be successful overseas. A uniqueselling proposition or USP defines what makes yourbusiness unique from every other competitor in thefield. It spells out the precise niche you seek to fill, and how you aim to fill it.

There are two major benefits in developing the USP.First, it clearly differentiates your business in the eyesof your current and potential customers or clients.Second, it focuses your staff on delivering the promiseof the USP, thus helping to improve your internalperformance.

11 INTERNAL ANALYSIS: COMPANY ANALYSIS

Example of a company’s product range

Product range (range width) Products (range depth) Varieties

cut flowers Rosa Leonidas ‘Meicofum’Sunny Leonidas ‘Meiguido’

etc.

Example of product characteristics

Product Variety Size Colour Availability Number of stems (stem length) per box

Rosa Leonidas ‘Meicofum’ 50 - 70 cm bicolour russet year round 50 - 60 cm: 200 stemsand cream 70 cm: 150 stems

Rosa Sunny Leonidas ‘Meiguido’ 50 - 70 cm bicolor orange year round 50 - 60 cm: 200 stemscream 70 cm: 150 stems

etc.

Questions an exporter needs to answer:

• Which products are you currently producing? How comprehensive is your product range?

• Which products do you consider to be the mainproducts you are specialised in?

• What new products would you be able to cultivate / produce?

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Together with your prices, quality is probably the maincompetitive factor on which you will compete in theflower trade. It is important to consider to which extentyour company is able to deliver the quality that isrequired in the identified markets and sales channels.

Note that quality not only means product quality.Management quality is just as important. Delivery reliability and the ability to learn and adapt areimportant selection criteria for European companieslooking for new (long-term) suppliers. Furthermore,keeping to the agreed quality is indispensable forbuilding up a long-term business relationship.

Check your current quality standards with the voluntaryand compulsory standards described in Chapter 9. Also refer to Chapters 8, 9 and 10 for information onthe importance of the various quality standards for yourproduct-market combinations.

Production capacityThe foreign buyer is seldom looking for a ‘spot’purchase. Instead, he is looking for a quality product ata fair price with continued availability. If you are

merely seeking to market your sporadic surpluscapacity, then the entry into the foreign trade marketwill probably be a disappointment. On the other hand, ifthe company is willing to devote even 10 percent of itsproduction capacity to foreign markets and theservicing of these accounts, it can reasonably expect tobuild substantial and permanent trade in those marketssuited to its products. However, keep in mind that:

Post-harvest treatmentThe care and handling between harvesting at thenursery and delivery to the country of import is oftenthe weakest point in the relationship between importerand producer.

Proper post-harvest care can considerably extend thevase life of imported cut flowers. Cut flowers needenough carbohydrate reserves to develop fully. Flowers harvested at the right stage of maturity haveenough carbohydrate reserves, but flowers harvestedwhen they are immature may lack both the reservesthey need to bloom fully and the hormonal signallingwhich guides their development. Flowers harvestedwhen they are too mature may be more sensitive totransport damage and ethylene. Most flowers are bestcut in bud stage and opened after storage, transport ordistribution. During transport, they experience waterstress, darkness and fungal and bacterial pathogens.

Temperature control is the most important measure inpost-harvest care, as this factor provokes the greatestloss of quality in cut flowers. Generally, hightemperatures accelerate biochemical reactions and thus,by speeding up the ageing process, the final vase life isreduced. Low temperatures slow the development anddepletion of carbohydrate reserves. They also decreaseflower ethylene production and sensitivity and limitpathogen growth. Correct temperatures need to be


• What management quality standards does yourcompany fulfil (ISO)?

• What is the general level of your product qualitycompared to other products in the identified market?Does your product have any official qualitystandards?

• In case environmental labelling could significantlyimprove the competitiveness of your export product,which one is the most interesting for your product-markets combination?


• How is the present capacity being used?• Will new export activity hurt domestic sales?• What will be the cost of setting up additional

production capacity and is it possible at all?• What cycles of production apply to your products? Is

there a seasonal emphasis and how does this matchup to the demand in the target market?

• Are there fluctuations in the annual workload?When? Why?

Often, the volume of the product marketed is not asimportant as a consistent and reliable supply of the actualproduct.

What a USP could look like:

• One sentence. • Clearly written, so that anyone can understand it. • It should be believable. • Composed of one benefit that is unique solely to

your company or product

How to develop your USP? Sit down with a notebookand: � Brainstorm. � List all the benefits your company or product can

offer. � Prioritise those benefits in order of what is the

strongest, and most unique to your business. � Write one sentence that conveys the first benefit on

the list.

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maintained all through the distribution chain. If not, theeffort and expense of providing the right conditions atone point of the chain, will be completely wasted atanother point, where little or no attention is given tomaintaining these values.

Optimum temperatures for most common flowers isnear freezing point, from 0º C (32º F) to 5º C (40º F).Note that some tropical crops such as Anthurium,Strelitzia, some Orchids and Gingers suffer chillinginjury and should not be kept below 10º C (50º F).

Carbohydrate levels are minimal in cut flowers and areconsumed through respiration. Due to hightemperatures and possible embolism in the vascularsystem, harvesting at the end of the day is notrecommended. After harvest, cut flowers should bepulsed in a sucrose solution. This improves the vase lifein most cases, but it also enhances microbial growth.Refrigeration is the most practical solution. Another possibility is a controlled atmosphere (i.e.reduced oxygen) to prevent respiration andconsumption of carbohydrate supply.

Cut flowers with leafy stems have a large surface area,so they lose water and wilt very rapidly. To prevent this,cut flowers should be stored above 95 percent relativehumidity. In some cases re-hydration after dry storageis possible. Note that storage in hard (alkaline) watergenerally reduces vase life.

Cleanliness is also an important measure. Immediatelyafter harvest, place cut flowers in clean containers. Anyadverse conditions during packing and transport cancause bacteria growth, which blocks flower stems, orfungi growth, infecting flower blooms.

11.3 Logistics

Availability of low-cost and high-quality freightservices between your country and the destinationcountry is a major criterion for a successful exportbusiness. In the case of highly perishable goods like cut

flowers, air freight is often the only option. However,sea freight can be an option for some foliage types.

Cold chainMaintaining the quality of harvested flowers requireseffective cooling systems to keep flowers at optimumtemperatures until they reach European consumers.Cold storage is a key factor driving a more tightlymanaged supply chain. Because flowers are rapidlyperishable, product quality hinges on the methodsavailable for storing a product. As a result, consistencyin the cold chain is essential to ensure that the qualityloss between harvest and consumption is minimal. Cut flowers must embark upon an intricate coolingchain within a few hours of harvest and remain in atemperature-controlled environment to avoid productdamage. It is essential that products be transported in arefrigerated (or at least insulated) vehicle to packinghouses, where the product is hydro-cooled, graded andpacked under temperature and humidity controlledconditions. In Kenya, for example, large exporters haveinvested in state of the art cold rooms to ensurecontinuity of product temperature. In general, smalland medium sized exporters do not have the facilitiesneeded to provide post-production processing and, as aresult, have difficulty meeting the quality standards ofoverseas buyers.

PackagingPackaging is used to protect against mechanical damageand to create a more favourable microclimate. It is anessential factor in determining the product’s quality.However, according to the way in which packagingsometimes is applied in developing countries, it canalso be a risk to quality, due to bruising and less thanoptimum conditions of temperature and humidity.

The packaging has to satisfy conditions in the field ofhandling. The transportation volume must be asefficient as possible and a high level of uniformity ofpackaging is desirable. In order to optimisetransportation, EU grower and traders generally useboxes of which the measurements are in accordancewith airfreight pallets and auction carts.


• How often are you able to deliver?• What lot sizes do you generally produce or are you

able to produce?• Are there cold-room facilities at your production base? • Are you able to maintain a cold chain during the

transportation of the products? (air-conditioneddomestic transport, cold-room facilities at the airport)

• What are the typical costs of logistics? (Check withfreight forwarders)

General factors affecting post-harvest quality

• Flower maturity at harvest• Temperature• Food supply• Light• Water supply• Ethylene• Growth tropism (bending of stems)• Mechanical damage• Diseases• Drying flowers

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Packaging design should take the following intoaccount:• Proper storage and transport;• Standard packaging sizes;• Recyclable materials or two-way systems.

Most cut flowers and foliage are packed in bunches,which are then put in cardboard boxes (single or doublewall). The boxes should be able to withstand roughhandling and net tie down by air-carriers. Often, newspapers, or other material is used to furtherprotect the products against mechanical damage duringtransport.

The exporter should always discuss the preferred typeof packaging with his customer!

11.4 Marketing and sales

How do you sell to current export markets? What worksin one European market is likely to work in another,subject to refinement based on market intelligence andknowledge about specific trade channel requirements.

What existing contacts does the company have in thetarget markets - relatives, friends, suppliers, etc? It is anadvantage to have some local presence in the targetmarket that can gather information, monitor progressand follow up leads.

A serious export marketing campaign requiressubstantial management time to execute it properly.Therefore, the company needs to be realistic as to howmuch time can be devoted to export marketing.

More information on how to make use of yourmarketing tools to foster your export activities will bedescribed in Chapter 13.

11.5 Financing

Export marketing is expensive. If financial resourcesare limited, then marketing plans will have to be modest.It is no good developing five new markets if thecompany only has the money to develop one.

For methods and terms of payments please refer toSection 13.4.


• Does your company have people specificallyassigned to marketing and sales activities?

• Which persons do you know in the target markets?• What sales support material is available?

Useful information on packaging for marine containertransport can be found at:� (MNS) http://postharvest.ucdavis.edu/Pubs/Marine_

Transport/Marine_Transport.shtml

Points of interest when choosing the right packaging:

Have your importers ever complained about the qualityof your products? Have they ever received rotten, spoiledor blemished products? Look for possible causes:• Unsuitable packaging material• Insufficient ventilation during transport• Too many products in a box• Wrong climatic conditions during transport• Problems with the products itself (diseases for

examples)• Other causes

Do you use different packaging methods for differentproducts?• Different products require different climatic

conditions (temperature, ventilation) during transport.• Some products need more space than others

(bruising, ventilation).

In case of marine transport, different kinds of productsshipped together in one container should havecompatible:• Temperature needs• Ethylene sensitivity• Relative humidity needs• Airflow characteristics

Does your importer use special transport packaging?• Perhaps you could use this special transport

packaging as well? Using the wrong packaging sizecan have a negative effect on your business.

• Maybe you could make use of the import’s packagingknow-how.

• Are the cardboard boxes directly forwarded to thewholesalers?

Fully recyclable packages must be used when tradingwith certain business partners. • In case of one-way systems, use cardboard and avoid

plastic foil if possible.• Colouring materials, used for printing, should not be

harmful to the environment.• Use glue that does not harm the environment or no

glue at all.• Do not use metal clips for the cartons.• Avoid waxed boxes or any combined packaging

materials

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11.6 Capabilities

Commitment to exportIt is important to consider whether or not the companyhas staff who are able to sell and develop aninternational business. The company should be able togenerate the physical and administrative infrastructureto deal with increased activities related to exporting -not only in dealing with orders but also with processingCustoms and shipping documentation. If this type ofinfrastructure is limited, then it is a weakness indeveloping sustained export activities.

Export experiencesIt is important to learn from past experience. If thecompany has tried and failed to penetrate an exportmarket previously, this can be analysed to determinewhere things went wrong.

Language skillsWhen dealing with European trade partners in theyoung plant material business, English is the most usedlanguage. Although most European trade partners willnot be native speakers themselves, the vast majorityspeaks English fluently. In almost all cases, foreignlanguage skills, particularly English, are essential whenentering the European market. When dealing withFrance, knowledge of the French language is a distinctadvantage. If you can communicate in Spanish, youhave a competitive advantage if you address the Spanishmarket.

On the few occasions when correspondence anddocuments in English will not suffice, exporters canusually find sources of translation capabilities for themore popular European languages. Language capabilitycan be advantageous since it facilitates cultural andsocial relationships.


• What amount of money can be tied up to setting upnew export activities?

• What level of export operating costs can besupported?

• How are the initial expenses of export effort to beallocated?

• What other new development plans are in the worksthat may compete with export plans?

• Is outside capital necessary to support efforts?


• What kind of commitment is the top-levelmanagement willing to make to an export effort?How much senior management time should beallocated? How much could be allocated?

• What organisational structure is required to ensurethat export sales are adequately serviced? Who willbe responsible for the export activities (exportdepartment’s organisation and staff)?

• What are the management’s expectations of theeffort?


• In which countries has business already beenconducted?

• From which countries have inquiries already beenreceived?

• What general and specific lessons have been learnedfrom past export experience?


• Which language skills are necessary when dealingwith your selected markets?

• Which language capabilities are available within theexport company?

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12 DECISION MAKING

Answers to the questions mentioned in Chapters 10 and11 can help an exporter not only to decide whether ornot to export but also determine what methods ofexporting should be initially used. A SWOT analysiscan be used as a tool to analyse the identifiedopportunities and threats and the company’s identifiedrelative strengths and weaknesses. Carrying out ananalysis using the SWOT framework helps an exporter

to focus his activities into areas where he is strong andwhere the greatest opportunities lie. It should be notedthat the matrix included in Section 12.1 should betreated as an example and that it should be adapted tothe exporter’s own situation.

Questions that should be answered:

Strengths:• What are your advantages? • What do you do well? • What relevant resources do you have? • What do other people see as your strengths?

☛ Consider this from your own point of view and from the point of view of the people you deal with. Do not be modest, butbe realistic. If you are having any difficulty with this, try writing down a list of your characteristics. Some of these willhopefully be strengths.

☛ In looking at your strengths, think about them in relation to your competitors. For example, if all your competitors providehigh quality products, then a high quality production process is not a strength in the market, it is a necessity.

Weaknesses:• What could you improve? • What do you do badly? • What should you avoid?

☛ Again, consider this from an internal and external basis: Do other people seem to perceive weaknesses that you do not see?Are your competitors doing any better than you? It is best to be realistic now, and face any unpleasant truths as soon aspossible.

Opportunities:• Where are the good opportunities awaiting you? • What are the interesting trends you are aware of? • Useful opportunities can come from such things as: changes in technology and markets on both a broad and narrow scale,

changes in government policy related to your field, changes in social patterns, population profiles, lifestyle changes, etc. ☛ A useful approach to looking at opportunities is to look at your strengths and ask yourself whether these open up any

opportunities. Alternatively, look at your weaknesses and ask yourself whether you could open up opportunities byeliminating the weaknesses.

Threats:• What obstacles do you face? • What is your competition doing? • Are the required specifications for your job, products or services changing? • Is changing technology threatening your position? • Do you have bad debt or cash-flow problems? • Could any of your weaknesses seriously threaten your business?

☛ Carrying out this analysis will often be illuminating - both in terms of pointing out what needs to be done, and in puttingproblems into perspective.

☛ You can also apply SWOT analysis to your competitors. This may produce some interesting insights.

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12.1 SWOT and situation analysis

A SWOT analysis is a framework for analysingstrengths and weaknesses, the opportunities and threatsan exporter is facing. This will help an exporter tofocus on his strengths, minimise weaknesses, and takethe greatest possible advantage of opportunitiesavailable. A SWOT analysis is just one of many goodtechniques that can help an exporter to build a strongcompetitive position for his organisation. An exampleof a SWOT analysis for an exporter of cut flowers indeveloping country is given in the next table. Within theSWOT matrix, a distinction is made between internalfactors (strengths and weaknesses) and external factors(opportunities and threats).

Such an analysis should be adapted to your personalcircumstances, since the factors differ for each exporterin the world. While for an exporter of fresh cut roses

“lack of cold room facilities” will be a major weakness,this problem does not apply to an exporter of dried cutfoliage.

Please note that also within a company a threat orweakness can change into an opportunity or strength. Agood example concerning this is MPS or othercertification. Not being able to supply certifiedproducts can be a barrier for exporting to certainchannels in the EU. However, when an exporter hasobtained certification, he will have access to thesechannels, so that, the factor of certification can be seenas an opportunity instead of a threat.

Be aware that success in export is by no meansguaranteed, even though you take into account all thefactors mentioned so far. Your environment consists ofother critical conditions and success factors, that areoften more difficult to influence as an individual

Table 12.1 Example of a SWOT analysis for exporters of cut flowers in developing countries

Internal factors

Strengths Weaknesses• Low labour costs • Distance to market (freshness, transportation costs)• Low or zero import duty • Negotiation skills• Low land costs • Language and communication

• Lack of market knowledge, information on regulations, etc.

• Low level of organisation in the industry• Access to finance / banking systems

External factors

Opportunities Threats• Specialty / novelty products • Poor image of LDC sources (logistical problems, lack of • Tropical flowers professionalism, poor commercial attitude)• Summer flowers • Phytosanitary requirements• Prepared (dried or dyed) cut flowers • Breeders’ rights regulations• Off season • Customers more and more demand short-term • Foliage: small-leafed foliage, novelties (immediate) deliveries (‘short lines’) • Certified products • High-tech production methods• Quality management systems • European research• Increasing shortage and costs of land in main • Shift of production from North towards South Europe

European production areas• Stable to declining production in Europe

Simple rules for successful SWOT analysis

• Be realistic about the strengths and weaknesses of your organisation.• Analysis should distinguish between where your organisation is today, and where it could be in the futures.• Be specific. Avoid grey areas.• Always analyse in context to your competition i.e. better than or worse than your competition.• Keep your SWOT short and simple.

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company, than changing for example internal factors.Some of the critical conditions such as low level oforganisation in the industry and financing have alreadybeen included in the figure above. However, otherfactors (sector-specific) which should also be includedin the SWOT analysis are:• sector policies;• availability of sector/branch organisations;• clustering/co-operation within the sector,

organisation of supply and production, value chainmanagement (please also refer to Section 10.5);

• know-how and technical assistance;• foreign trade assistance;• financing.

☛ Inquiring at local business support organisations orcolleague exporters can be a good starting point inbeing aware of other critical conditions forsuccessful exporting.

12.2 Strategic options and objectives

Through of conducting the external analysis (marketaudit) and internal analysis (company audit) (Chapters10 and 11), you will be able to come to a decisionwhether or not to export.

You have identified products suitable for exportdevelopment. Also, you know what modifications, ifany, must be made to adapt them to overseas markets.You know what countries and market segments youare going to target for sales development and/or co-operation agreements.

You have identified the best sales channel (directexporting or co-operation agreements).You know what special challenges pertain to theselected markets (competition, import controls etc.)and what strategies you will use to address them.

Once a company has determined that it has exportableproducts, it must still consider whether the developmentof an export business adheres to the companyobjectives. In order to arrive at this conclusion themanagement should ask itself the following questions:• What does the company want to gain from exporting?• Is the goal of exporting consistent with other

company goals?• Are the benefits worth the costs or would company

resources be better spent developing new domesticbusiness?

Companies can waste a lot of time and moneyattempting to enter markets which do not have potentialor for which their product is not suitable. To besuccessful in export marketing, exporters need to focuson specific products and markets and be prepared todeal with all foreseeable situations. Therefore, severalpossible strategies have to be considered.

The figure below could be summarised in the followingstrategic steps:• External analysis (market audit, Chapter 10) and

internal analysis (company audit, Chapter 11)• SWOT analysis (Chapter 12)• Decision making & formulation objectives

(Chapter 12)

Advantages and disadvantages of exporting

Advantages Disadvantages • enhance domestic competitiveness • the need to develop new promotional material • increase sales and profits • subordinate short-term profits to long-term gains • gain global market share • incur added administrative costs • reduce dependence on existing markets • allocate personnel for travel • exploit corporate technology and know-how • wait longer for payments • extend the sales potential of existing products • modify your product or packaging • stabilise seasonal market fluctuations • apply for additional financing • enhance potential for corporate expansion • obtain special export licences• sell excess production capacity• gain information on foreign competition

✔

✔

✔

✔

ExternalAnalysis

ExportMarketing Plan

InternalAnalysis

MarketingStrategy

DecisionMaking

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• Elements which can be used as inputs for the MarketEntry Strategy and Export Marketing Plan (Chapter 13).

If you have come to the decision to export, the nextphase of the export marketing process is to draw up anExport Marketing Plan (EMP) which defines amarketing strategy stating how the company is going topenetrate the identified market. The marketing strategyis designed around the information collected in theinternal and external analysis and the marketing toolswill be described in the following chapter.

Formulating an export marketing strategy based uponsound information and its proper assessment increasesthe chances that the best options will be selected,resources will be utilised effectively, and efforts willconsequently be carried through to completion.

For assistance in writing an EMP and formulate answeron the questions asked in this chapter, please refer tothe CBI’s “Export Planner”.

An international business plan should define yourcompany’s:

• readiness to export • export pricing strategy • reason for exporting • potential export markets and customers • methods of foreign market entry • exporting costs and projected revenues • export financing alternatives • legal requirements • transportation method • overseas partnership and foreign investment

capabilities • corporate commitment to the exporting process

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13 EXPORT MARKETING

Which marketing tools can you use to successfullybuild your export business? This chapter will provideyou insight and give tips how to make use of yourmarketing tools to promote the sales of your productsand to build a favourable trade relationship.

13.1 Matching products and the product range

In the company audit (see Section 11.1), the exporterreviewed the company’s product range and productcharacteristics. The aim of this review was to enable theexporter to match market opportunities with thecompany’s products on offer. This review can also beused as a starting point for considering opportunities forimproving the exporter’s product range.

In most cases, exporters will find out that the currentproduct range does not match the demand of theidentified market segments and sales channels. The cause of this mismatch can, for example, lie in thefact that currently produced varieties are outdated.

Note that one of the most important issues in selectingnew varieties is the question whether or not the varietycan be successfully produced under your productioncircumstances.

13.2 Building up a relationship with a suitable trade partner

One of the most ominous obstacles for exporters can bethe search to contact, attract and secure a good importeror trade partner. Many avenues are available for locatingtrade partners. You should employ any and all, whichseem appropriate for your product-market combination.

How to find a potential trading partner?The best ways for exporters of from developing

countries to approach potential trading partners in theEuropean cut flower and foliage market are:• Direct mail: You can write a letter, e-mail or fax

directly to a European company. Most companieswill probably respond that they are not interested orthat they already carry a competitive line. However, only a few positive replies are needed tocontinue your search and evaluation of prospectivedistributors.

• Personal visits: Once you have received a number of“interested” replies, plan a trip to that market.Additionally while travelling, stop in other potentialmarkets to assess the situation as well as attempt tomake contacts. Many times a personal visit will payfor itself in terms of the gained benefits.

• In case of contacting flower auctions, the importdepartment is the place to go;

• Invite EU importers or potential business partners tovisit your company;

• Build a network in order to extend your contacts;• Visit international trade fairs (for a list see 13.5).

How to identify the most suitable trade partner?Evaluate the potential trade partners of which you haveobtained information, using the following criteria:• Is the information complete? (full address, telephone

/ fax number, e-mail address, contact person)• Is the importer active in the country you selected?• Does the importer focus his activities on the

corresponding products?• What kind of trade relation is the potential trade

partner interested in (arms-length, co-operativeagreement, contract basis)? Does this correspondwith your preferred type of relationship?

• What is the position of the potential trade partner inthe market?

• What is the financial status and credibility of thecompany?

Using these criteria, draw up a priority list of thecontact addresses you have received.

From the priority list, you must identify the tradepartners that match best your own company profile,product range and export strategy. Particularly in thecase of future long-term close co-operation, it isimportant to get a clear picture of the company you aredealing with and understand their business activities.

For more information on how to built a businessrelationship, please also refer to the recently publishedCBI manual “Your image builder”.

In the case of exporters who are looking for varieties toimprove their product range, a couple of possible sourcesexist:� Trade magazines like ‘Floraculture International’

(free subscription) often give useful information onnew and popular varieties and pack trials organisedby European young plant producers. For a list oftrade magazines see Appendix 2.5.

� Visiting trade fairs is also a good way of becominginformed about potentially interesting varieties.

� By using more detailed trade statistics (for instanceauction sales), you can often determine whichvarieties are most popular in the target markets.

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13.3 Drawing up an offer

There are two different kinds of offers:1. general offers; and2. specific offers.

1. Drawing a general offer• The purpose of a general offer is to make the first

contact with potential trading partners who thesupplier does not yet know personally.

• A general offer consists of sending a short profile ofyour own company and a summary of your productrange.

• In a personal letter, briefly introduce your companyand what you have to offer.

2. Drawing up a specific offerA specific offer is legally binding for a certain periodof time. You must therefore be capable of fulfilling theterms of contract. You should make up a specific offeronly when you know the business partner personally orafter you have made the initial contact.

When sending a specific offer, it should include:- Name of the person responsible in your company;- Exact description of the products offered;- Price of the products offered in accordance with

the Incoterms 2000 (if applicable, split up bydelivery quantities or quality); and

- Possible delivery date and terms of delivery.

Some more tips to increase the effectiveness of youroffer:• A telephone call to ask whether the offer (and the

samples, if applicable) has arrived.• An invitation to visit your company.• Possibly propose a visit to the country of destination.

In that case:- If necessary, hire an interpreter.- Ask your own consulate, business support

organisation, or other intermediary for assistance.

Price settingImporters tend to handle part of the imported productsat fixed prices, which are based on longer termforecasts and auction prices. Consequently, there is littleroom for the exporter to influence the price. The firstobjective for an exporter must be to offer a suitableproduct and assortment policy which meets the needs ofthe customer.

Nevertheless, when establishing an overseas price, youneed to consider many of the same factors involved inpricing for the domestic market. These factors includecompetition; costs such as production, packaging,transportation and handling, promotion and sellingexpenses; and most important in the flower market: the

demand for your product and the maximum price whichthe market is willing to pay.

How you price your product is worth considerablethought and effort since it directly affects your ability tomake a profit. Take some time to research the followingmanagement questions:

You must continually monitor your price including yourcosts of production, your competition and yourcustomers and be prepared to make adjustments. In competitive businesses like the floricultural trade, thesuccessful company is the one that can adapt andcontinue to operate profitably.

On the next page you find an overview of the way youcan calculate the price of your export product (forinformation on Incoterms see the next Section).

Questions to ask when setting your price:

How much does it cost to grow your product?• Production costs not only include costs for growing,

but also for packaging, distribution and promotingyour products.

• Also the costs of unsold products should be included.

What are your profit goals?• A profit goal states how much a business should earn.• You can set the profit goal as a percentage (margin)

above the product costs or set the total profit figurefor the entire business?

• A profit goal can guide decisions on the amount ofproduce you will grow and the price you will charge.

What price do competitors charge?• Take an industry focus on your pricing when

researching what competitors are pricing.• By walking through the steps indicated in Section

10.2 you will know the prices competitors charge andwhy they charge what they do. Use the competitiveanalysis to develop the upper limit of your pricerange. Be sure you compare your products tocompetitors.

• In the floricultural trade competition is intense. Youshould therefore try to price at the lower end of theprice range unless you can distinguish your productthrough quality or a unique selling feature.

What is the customer demand for my product?• How unique is your product or assortment?• To price according to demand you have to know

more about the size and nature of your customer baseand their feelings about pricing.

• You will need to keep an eye on general markettrends. See also Chapter 3.

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13.4 Handling the contract

In case of selling via the auction system, it is importantto note that imported merchandise is traded on the basisof an annual contract between the seller and theauction. A standard form of contract, issued by theFederation of Dutch Flower Auctions (VBN), is used byall Netherlands auctions. In applying for a licence eachyear, the importer must provide details regarding thename and location of the grower, the product species,the area under cultivation, the number of pieces to bedelivered, the share this will represent in totalproduction, the period that the product will beauctioned, and the number of shipments per week.

When selling directly via European importers, the useof written contracts is not a widespread practice. Mostimporters prefer to work on a trust base without writtencontracts, arguing that it is not efficient to put acontract together each time a deal is made. An exportershould keep in mind, however, that in the case of aconflict with you importer, communication via e-mail,fax or even by telephone, also functions as a contract.

In the case contracts are used, the following termsshould be considered:

a. Contract terms:• Conclude the delivery conditions according to

international guidelines (e.g. Incoterms 2000).• When delivering for the first time, it is common to

deliver the goods free on commission and freight-paid.

b. Contract fulfilment:• Procure the delivery documents in good time.

Export price calculation

Total costs per unit+ Profit+ Commissions+ Banking fees+ Palletisation / export packing+ Freight forwarding and documentation fees+ USDA inspection and phytosanitary certificate fees+ Other direct expenses related to special shipping requirements such as temperature recorder charges

= EXW price (Ex Works)+ Inland transportation

= FAS price (Free Alongside Ship)+ Terminal handling charges

= FOB price (Free On Board)+ Ocean freight charges+ Ancillary charges

= CFR price (Cost & Freight)+ Insurance

= CIF price (Cost, Insurance, Freight)

• Comply strictly with all parts of the supplyagreement.

• If you cannot comply with any part of the agreement(e.g. delivery delays or quality problems), inform thecustomer clearly and in good time.

• Co-operate on a partnership basis and seek acommon solution even if conflicts arise.

• Fulfilling the contract should have a high priority,particularly when delivering for the first time.

Trading relations between exporter and importer arebased on trust and can only be built up by meeting thehigh expectations of the importer. If an importer findsthat the product does not meet his expectations, thiswill immediately backfire on the business relationshipwith the exporter.

It is important that an exporter discusses the ‘what ifs’with its trade partner: what if there’s a problem withinspection, what if a claim is necessary because thelogistical service provider mishandles the productsduring shipment, and what if your customer has aproblem with product quality after arrival.

Other more practical questions that should be asked are:• When is the shipment needed?• Does the customer have a preferred freight carrier?• Which airport is most convenient?• Does he have an agent to clear the shipment through

customs?• Does the customer want to pay for the shipment to

be insured?

Methods of paymentThe determination of payment conditions for a regularexport transaction is part of the package of negotiationsbetween seller and buyer, who actually have more orless opposing interests. The seller wants to have thelargest possible guarantee of financial coverage for thegoods he has to supply according to his sales contracts.The buyer wants to be sure about availability, quantityand quality of the goods he buys, before he pays theagreed price.

There are various methods of receiving payment foryour exports. However, the most commonly used termsin the floricultural trade are open account and paymentin advance.

Open AccountSelling on open account carries the greatest risk for theexporter. Under this method the buyer does not pay forthe goods until they have been received. If the buyerrefuses to pay, the only recourse by the exporter is toseek legal action in the buyer’s country. Thus, the openaccount method should only be utilised when there is anestablished relationship with the buyer and the countryof the buyer possesses a stable political and economic

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environment. If your sales must be made on openaccount, the date upon which the payment is due shouldbe stipulated.

Payment in advanceThis method is the most desirable from the seller’sstandpoint, because all risk is eliminated. While cash inadvance may seem most advantageous to you, insistingon these terms may cost you sales. Just like domesticbuyers, foreign buyers prefer greater security and bettercash utilisation. Some buyers may also find thisrequirement insulting, especially if they are consideredcredit worthy in the eyes of the rest of the world.Advance (partial) payments and progressive paymentsmay be more acceptable to a buyer, but even theseterms can result in a loss of sales in a highlycompetitive market.

Most export shipments are partly pre-paid before theproducts are shipped. Because collections fromcustomers are more difficult overseas, it isrecommended to get a minimum of 50 percent inadvance. Once on-going business and trust isestablished, exporters should grant their foreigncustomers standard payment terms. Because of thepossible complications and costs, letters of credit areoften avoided.

Terms of deliveryExport terms of delivery determine what costs arecovered in the price of the cargo. They also indicate atwhat point ownership transfers to the buyer and at whatpoint responsibility for the cargo transfers. Internationalcommercial terms (Incoterms 2000) provide “theinternational rules for the interpretation of trade terms.”

The most commonly used trade terms are:

CIF (Cost, Insurance, Freight)Under this term, for shipments to designated overseasport of import, the seller quotes a price for the goods,including insurance costs and all transportation andmiscellaneous charges, to the point of debarkation fromthe vessel or aircraft. The seller pays for the cost ofunloading cargo at the port of destination, to the extentthat they are included in the freight charges. If thecharges are separate then they fall to the account of thebuyer.

FOB (Free on Board)Under this term, the seller quotes a price for goods thatincludes the cost of loading at the port of departure.The buyer arranges for transportation and insurance.

Other trade terms less frequently encountered are:

CFR (Cost and Freight)For shipments to designated overseas port of import, theseller quotes a price for the goods that includes the costof transportation to the named point of debarkation. The buyer is responsible for the cost of insurance. This is referred to as C&F in the old Incoterms. The seller pays for the cost of unloading cargo at theport of destination, to the extent that they are includedin the freight charges. If the charges are separate thenthey fall to the account of the buyer. Most agents work on a commission basis, which placesthe risks of transport with the shipper. Insurance is raredue to the high premiums (4%) and risks are typicallyobviated through claims. Nevertheless, claims are rarelyawarded since most air transport related problems resultfrom force majeur, which absolves the forwarder ofresponsibility. Only in cases of culpable negligence,which are unusual, may claims be awarded.

It is recommended that quotations to new Europeancustomers should be made on a CIF basis. However, supplier and importer are free to negotiateand agree whether quotations and subsequent trade arebased on CIF or FOB prices.

The customer database should give the sales person aquick review of the most important customerinformation when making or answering a telephone callor planning a visit.

If possible, the database should be computerised,because this simplifies changes, updating, sorting andselection procedures, etc. If computerisation is notpossible, the customer database should be on file cards.

InternetAs a source of information and means ofcommunication, Internet is generally considered to havemany opportunities for companies in developingcountries. The main advantages of the Internet are:• Low cost of communication;• Fast delivery of information;• Independence of distance and timeline;• Multimedia possibilities.

Besides one-to-one communication through the use ofE-mail, Internet offers opportunities for presentations,(market) research, distribution, sales and logisticalimprovements. If your target group consists ofimporters/growers in overseas countries, you canadvertise for (new) customers on your Internet site,showing your company, product range and indicatingthe production circumstances.

Trade fairsVisiting or even participating in a trade fair abroad canbe an efficient tool for communicating with prospectivecustomers. It provides more facilities for bringingacross the message than any other trade promotionaltool. It can also be an important source of informationon market developments, production techniques andinteresting varieties.

Important motives for companies visiting Europeantrade fairs are:• Establishing contacts with potential customers;• Orientation on the European market;• Gathering information on specific subjects;

Although significant costs are involved, actuallyparticipating in a trade fair could be interesting for anumber of companies to meet, for example, Europeancompanies interested in setting up young plantproduction facilities in tropical regions. One of themajor advantages of participating yourself in a tradefair is the ability to present your company and productsin a more extensive way (3-D presentation, companyvideo, and product displays).

Floricultural trade fairs are organised in many EuropeanUnion countries. The most relevant fairs for exportersof cut flowers and foliage are listed in the box below.The contact addresses of these and other trade fairs arelisted in Appendix 2.4.

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13.5 Sales promotion

One of the major critical success factors for exportersof young plant material to the European Union isattention to customer requirements and the ability tomaintain good relationships with their Europeanbusiness partners. Sales promotion revolves arounddeveloping and expanding these customer relations andthereby maintaining and increasing sales volume.

Some tips for developing customer relations:• Take good care of existing contacts. This includes for

example expressions of thanks to business partners,regular information on the company developmentslike product range, quality improvements, etc.

• Always reply to a letter of inquiry. If you cannotsupply this contact, say so, explaining that you willget in touch with him for the next campaign.

CommunicationIt is advisable to commence with communicationmeasures, which only require a small amount ofplanning and co-ordinating, such as revising thecompany’s standard printed matter:• Standardise all printed paper used outside the

company (letterheads, visiting cards, fax form, etc.)• A brochure of your company (including photos of

production sites and produce) can be useful forpromoting new contacts and sales.

Constant, prompt and reliable communication is a vitalprerequisite for maintaining a long-term businessrelationship with your customers. If possible, smallerfirms should also try to be reachable by (mobile) phoneat office hours.

Sales organisationThe term ‘sales organisation’ refers to theorganisational system that carries out the sales of thecompany’s products. A sales organisation usuallyconsists of back office and sales force.

As most sales are conducted by telephone, fax or e-mail, having well-functioning sales staff is an absoluteprecondition for successful market participation. This also applies to smaller company where one personhas to take up different (sales) functions.

An essential tool used in sales is a detailed and up-to-date customer database. This database can vary from asimple collection of customer data sheets to anadvanced customer relation management system.However, the customer database should at least containthe following information:• Basic information on the customer: name, address,

telephone numbers, etc.• Changing data on the customer: data resulting from

business activities with the customer, such astelephone calls, offers, sales information, etc.

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Main European trade fairs

Trade fair Where? When? What?

International Horti Fair Amsterdam, 5-8 November 2003 International trade fair for cut flowers,The Netherlands (annual) plants, equipment and florists’ requisites.

IPM Essen, Germany January / February 2004 International trade fair for cut flowers,(annual) plants, equipment and florists’ requisites.

Florissimo Dijon, France 11 March - International exhibition for exoticSunday 20 March 2005 flowers and plants.(every 4 years)

Flormart-Miflor Padova, Italy 12-14 September 2003, International trade fair for cut flowers,February 2004 plants, equipment and florists’ requisites.(semi-annual)

Iberflora Valencia, Spain October 2003 Garden and horticultural technology (annual) trade fair

Salon du Végétal Angers, France 18-20 February 2004 International horticultural trade fair(biennial)

Four Oaks Cheshire, 2-3 September 2003 Horticultural trade fairTrade Show United Kingdom

More comprehensive overviews of world-wide trade fairscan be found on the following Internet sites: � http://www.flowercouncil.org/� http://www.cha-hort.com/� http://www.floracultureintl.com/

For additional information on trade fair participation,please refer to CBI’s Handbook “Your show master - aguide for selection, preparation and participation intrade fairs.” and the recently published CBI manual“Your image builder”

Assistance with market entryLocal business support organisationsBefore approaching organisations abroad, an exportershould first check with local business supportorganisations (trade promotion organisations, Chambersof Commerce, etc.) and foreign representatives in his orher country.

Import Promotion OrganisationsIn most EU countries, there are organisation thatpromote imports from developing countries throughspecific export promotion programmes:• Supplying information on: statistics and other

information on national markets, regular newsbulletins, importer databases, and marketopportunities;

• Individual assistance: management training, testingproducts by display and adaptation services; and

• Establishing contacts: collective trade fairparticipation and selling missions.

Branch organisationsIn most European countries, producers, wholesalers andoften also retailers are organised in so-called branchorganisations. These organisations can be of use to newexporters to the EU. An example is the Fresh ProduceConsortium (UK), which can give you information onthe UK wholesale markets.

Information how to reach these organisations can befound in Appendix 2.3.

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Appendices

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Cut flowers and foliage

APPENDIX 1 DETAILED IMPORT/EXPORT STATISTICS

Imports of cut flowers and foliage into the EU, 1999-2001€ thousand/tonnes


Total 2,796,417 700,496 3,068,470 646,287 3,009,341 603,620Intra EU 2,213,837 522,057 2,378,915 476,991 2,295,818 436,823Extra EU 582,580 178,439 689,555 169,296 713,523 66,797Developing countries 455,047 138,912 533,254 125,911 574,905 131,612

The Netherlands 1,962,622 435,547 2,099,563 394,772 2,022,542 371,330Kenya 131,426 35,987 154,654 40,892 178,842 43,890Israel 113,002 34,039 141,448 37,395 124,713 30,573Colombia 94,000 26,884 104,998 18,655 103,300 17,723Spain 84,091 34,322 90,018 30,285 92,208 30,554Ecuador 62,956 11,864 78,560 13,076 82,342 13,770Zimbabwe 51,810 16,940 66,524 19,848 69,140 19,830Italy 61,664 11,616 59,322 10,561 55,546 8,862Belgium 32,912 8,385 44,380 21,299 42,984 8,071Germany 26,090 19,893 27,451 5,892 28,839 5,471France 19,770 5,917 23,939 6,045 21,117 3,994Zambia 15,985 3,078 17,668 3,174 18,347 3,290Thailand 16,314 3,418 18,478 3,494 18,328 3,581United Kingdom 16,119 4,127 20,130 5,238 17,746 5,758India 15,960 5,917 15,786 5,135 15,206 4,963South Africa 12,916 3,725 13,047 3,358 14,473 3,723Uganda 5,632 1,324 10,699 2,227 12,887 2,800Turkey 11,669 19,475 8,221 4,046 10,980 5,209

96

Imports of cut flowers and foliage into UK, 1999-2001€ thousand/tonnes


Total 504,584 123,818 587,305 123,925 668,394 115,350Intra EU 401,315 99,659 474,003 99,425 548,048 90,080Extra EU 103,269 24,159 113,302 24,500 120,346 25,270Developing countries 96,284 22,720 106,518 23,371 116,212 24,655

The Netherlands 364,816 69,913 433,358 75,752 494,021 75,987Kenya 30,036 6,740 37,765 8,168 51,381 10,221Colombia 49,154 9,670 54,364 10,110 48,929 8,656Spain 26,881 13,332 28,094 9,589 37,809 11,343Belgium 3,557 1,769 6,712 13,037 9,152 1,346Turkey 9,075 3,909 5,595 2,789 6,097 3,149Italy 4,236 813 4,420 756 4,754 747Israel 6,094 1,293 6,301 983 3,550 539Morocco 2,099 787 2,378 830 2,044 837Germany 819 13,166 329 87 1,460 240Zimbabwe 1,423 213 1,163 174 1,414 223Ecuador 917 250 1,392 305 1,206 232India 1,159 520 1,077 408 1,096 446Costa Rica 228 74 547 133 1,024 233

Imports of cut flowers and foliage into Germany, 1999-2001€ thousand/tonnes



The Netherlands 802,102 196,905 798,862 159,508 698,479 147,132Italy 28,390 5,185 26,134 4,284 22,627 3,812Ecuador 11,773 1,875 14,168 1,931 15,077 1,997Kenya 10,060 2,549 11,698 2,881 13,071 2,987Colombia 9,439 1,886 10,013 1,841 9,917 1,753Israel 9,544 2,200 10,762 2,157 8,353 1,701South Africa 5,501 1,771 5,088 1,490 5,295 1,561Spain 5,270 1,603 4,759 1,108 4,820 1,040Tanzania 2,133 535 2,173 519 3,821 790Belgium 4,153 727 4,716 764 3,530 617India 4,175 1,568 2,925 1,137 3,421 1,153Austria 660 96 723 81 2,517 298China 1,965 462 2,290 458 2,229 484France 2,518 613 2,150 379 1,955 337Zimbabwe 2,545 753 3,155 809 1,626 358Thailand 1,315 256 1,581 245 1,535 243

97

Imports of cut flowers and foliage into France, 1999-2001€ thousand/tonnes



The Netherlands 344,918 84,213 377,088 79,129 359,889 69,580Belgium 17,755 3,570 22,075 3,964 19,392 3,563Spain 10,033 3,787 11,841 4,334 12,034 3,467Italy 9,560 1,830 9,860 2,336 8,317 1,515Ecuador 3,706 476 5,176 631 5,901 674Colombia 4,272 739 4,535 776 4,249 710Kenya 2,966 402 2,739 357 2,534 327Germany 2,479 515 2,264 459 2,352 500Morocco 1,595 463 1,554 400 1,795 471Côte d’Ivoire 812 290 1,100 329 1,694 457India 766 264 772 261 1,531 355Costa Rica 1,269 316 1,426 346 1,338 318Cameroon 658 182 794 217 895 251United Kingdom 1,179 166 1,143 231 819 131Mauritius 583 55 653 62 697 68South Africa 442 104 408 80 531 104

Imports of cut flowers and foliage into The Netherlands, 1999-2001€ thousand/tonnes



Kenya 86,269 25,950 100,981 29,252 110,960 30,193Israel 81,210 27,600 105,999 31,239 96,098 25,691Zimbabwe 44,615 15,543 59,807 18,532 64,686 19,066Ecuador 27,782 6,060 36,947 7,254 41,416 8,249Spain 37,061 14,382 39,434 13,754 1,304 13,199Colombia 12,420 2,559 16,199 2,961 19,400 3,414Zambia 15,240 2,900 16,771 2,953 17,725 3,112Uganda 5,016 1,191 10,276 2,149 11,858 2,634Germany 10,347 3,695 12,140 2,996 10,519 2,325France 7,032 1,690 10,505 2,384 9,451 2,104Belgium 6,007 2,143 8,860 3,337 9,212 2,389Italy 6,967 1,486 7,514 1,520 7,763 1,226United Kingdom 6,231 2,711 7,501 3,163 6,425 3,691Tanzania 5,594 1,624 6,260 1,721 6,115 1,565South Africa 4,394 1,115 4,840 1,090 5,674 1,275India 6,274 1,960 7,216 1,918 5,006 1,336

98

Imports of cut flowers and foliage into Italy, 1999-2001€ thousand/tonnes



The Netherlands 108,759 18,652 124,214 18,954 116,258 17,109Thailand 11,666 2,619 13,371 2,758 13,351 2,855Ecuador 11,812 2,074 11,969 1,717 9,149 1,294France 5,104 1,227 6,102 736 4,153 518India 1,982 924 1,719 700 2,079 845Spain 1,314 550 1,900 545 1,900 509Peru 1,341 232 1,993 289 1,892 265Germany 1,198 294 1,428 240 1,875 281South Africa 1,250 324 1,220 313 1,067 281Mauritius 845 117 937 118 1,021 129Zimbabwe 1,419 204 1,648 203 902 104New Zealand 710 75 607 63 727 68Israel 1,100 142 1,013 123 679 77Colombia 1,337 184 1,169 143 517 60Kenya 1,068 185 647 100 512 64

Imports of cut flowers and foliage into Spain, 1999-2001€ thousand/tonnes



The Netherlands 17,743 3,716 19,690 4,076 16,689 3,399Colombia 11,396 2,014 13,125 2,118 14,431 2,398Ecuador 4,710 781 6,027 852 6,620 938France 864 819 1,608 1,574 1,971 457India 828 348 880 298 735 281Portugal 461 196 364 954 394 131Philippines 249 67 456 112 303 79China 92 15 130 44 300 99Israel 366 38 404 41 296 34Thailand 325 37 353 32 278 28United Kingdom 123 6 1,020 372 269 35Germany 382 536 235 314 219 334South Africa 146 37 186 42 185 71Italy 268 54 250 68 147 44Belgium 17 1 196 12 129 6Costa Rica 502 158 169 40 112 24

99

Cut flowers

Imports of fresh cut flowers into the EU, 1999-2001€ thousand/tonnes


Total 2,617,625 640,496 2,865,100 585,813 2,777,992 548,178Intra EU 2,079,980 477,824 2,219,556 431,114 2,113,896 396,528Extra EU 537,645 162,672 645,544 154,699 664,096 151,650Developing countries 422,473 128,127 500,978 116,070 535,808 120,356

The Netherlands 1,867,847 418,086 1,983,920 372,009 1,883,169 339,592Kenya 129,469 35,578 153,384 40,557 172,070 42,589Israel 110,050 33,828 138,879 37,223 122,807 30,455Colombia 92,662 26,628 103,825 18,429 102,324 17,571Spain 80,651 29,332 85,849 29,100 88,562 29,582Ecuador 62,240 11,850 77,493 13,054 81,061 13,752Zimbabwe 51,769 16,934 66,508 19,845 69,138 19,830Italy 46,638 8,535 44,524 7,165 42,519 6,373Belgium 29,851 7,644 38,986 7,896 37,281 7,044Germany 20,314 5,353 21,482 4,433 22,133 4,012Zambia 15,985 3,078 17,668 3,174 18,347 3,290Thailand 15,916 3,345 18,074 3,439 18,095 3,546France 15,173 3,805 17,448 3,452 16,786 3,182

100

Imports of prepared cut flowers into the EU, 1999-2001€ thousand/tonnes



The Netherlands 78,564 13,253 95,721 16,210 120,967 27,072Kenya 1,013 163 359 73 6,254 1,117United Kingdom 2,687 372 3,165 385 3,641 702Italy 5,126 825 4,122 748 3,397 545Belgium 1,913 450 2,261 356 3,379 683Germany 1,672 233 1,600 210 2,495 302Spain 1,899 3,037 1,938 377 2,113 629India 1,177 397 1,564 520 1,698 633France 1,734 332 2,113 150 1,620 209Poland 1,472 463 1,679 574 1,616 479China 1,398 287 1,031 217 1,528 270South Africa 1,448 417 1,303 339 1,462 345Israel 1,533 61 1,390 53 1,286 49Ecuador 685 13 1,044 15 1,281 18Colombia 880 131 818 145 955 152Australia 1,204 291 953 206 955 203Denmark 1,487 141 703 138 890 176Hungary 518 104 405 98 432 102Côte d’Ivoire 98 37 373 130 429 145

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Foliage

Exports

Imports of foliage into the EU, 1999-2001€ thousand/tonnes



The Netherlands 16,211 4,208 19,922 6,553 18,406 4,666Italy 9,900 2,256 10,676 2,648 9,630 1,944India 11,442 4,524 10,632 3,866 8,917 3,456China 3,154 779 4,034 937 5,091 1,179Germany 4,104 14,307 4,369 1,249 4,211 1,157South Africa 4,277 1,556 3,695 1,311 3,616 1,354France 2,863 1,780 4,378 2,443 2,711 603Turkey 684 542 1,037 485 2,516 846Belgium 1,148 291 3,133 13,047 2,324 344Austria 387 93 298 46 2,111 260Poland 1,922 1,636 2,033 1,706 2,036 1,255Philippines 1,237 289 1,850 375 1,846 402Spain 1,541 1,953 2,231 808 1,533 343USA 1,084 279 1,236 253 1,121 214

Exports of cut flowers and foliage by the EU, 1999-2001€ thousand/tonnes


Total 2,434,526 1,463,828 2,674,188 609,955 2,576,783 654,313Intra EU 2,055,973 1,398,997 2,197,918 529,674 2,089,129 574,411Extra EU 378,553 64,831 476,270 80,281 487,654 79,902

destination countries:Germany 859,319 316,725 798,118 193,357 720,063 203,116United Kingdom 325,400 400,942 443,269 87,580 417,459 96,367France 348,586 473,211 402,191 108,333 387,064 107,637USA 76,343 11,755 135,493 17,184 130,269 16,279Italy 109,129 21,957 115,364 19,081 119,988 19,920Switzerland 109,813 14,402 91,351 11,875 89,437 11,652Belgium 76,392 17,202 80,779 21,253 84,779 30,191The Netherlands 82,988 36,306 90,918 33,920 80,547 51,087Austria 77,173 17,577 72,776 13,514 76,414 13,974Russia 16,711 3,049 45,294 8,005 65,768 8,748

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2.1 Standards organisations

INTERNATIONAL

International Standardisation Institute (ISO)E-mail: [email protected]: www.iso.org

UN/ECE

Trade Division - Agricultural Standards UnitE-mail: [email protected]: www.unece.org

EUROPEAN UNION

Comité Européen de Normalisation (CEN)European Normalisation CommitteeE-mail: [email protected]: www.cenorm.be

SGS European Quality Certification Institute E.E.S.V.E-mail: [email protected]: www.sgs.nl

FRANCE

Association Française de Normalisation (AFNOR)E-mail: [email protected]: www.afnor.fr

GERMANY

Deutsches Institut für Normung eV (DIN)E-mail: [email protected]: www.din.de

ITALY

Ente Nazionale Italiano di Unificazione (UNI)E-mail: [email protected]: www.unicei.it

THE NETHERLANDS

Nederlands Normalisatie Instituut (NNI)E-mail: [email protected]: www.nni.nl

UNITED KINGDOM

British Standards Institution (BSI)E-mail: info@ bsi-global.comInternet: www.bsi-global.com

2.2 Sources of price information

ITC Market News Service (MNS)Internet: http://www.intracen.org

Federation of Dutch Flower Auctions (VBN)Internet: http://www.vbn.nl

International Association of Horicultural Producers(AIPH)Internet: http://www.aiph.org

Florvertical.comInternet: http://www.florvertical.com

2.3 Trade associations

INTERNATIONAL

AIPHInternational Association of Horticultural ProducersE-mail: [email protected]: http://www.aiph.org

Union FleursInternational Association of Flower WholesalersE-mail: [email protected]: http://www.unionfleurs.com/

AUSTRIA

Bundesverband der Erwerbsgärtner ÖsterreichsE-mail: [email protected]: http://www.gartenbau.or.at/

BELGIUM

Algemeen Verbond van de Belgische SiertelersBelgian Nurserymen and Growers’ FederationE-mail: [email protected] Internet: http://www.avbs.be

DENMARK

Dansk erhvervsgartnerforening (DEG)Danish growers associationE-mail: [email protected]: http://www.deg.dk

FRANCE

Fédération des grossistes en fleurs et plantes (FGFP)French wholesalers federationInternet: http://www.fgfp.com

APPENDIX 2 USEFUL ADDRESSES

103

GERMANY

BGIAssociation of the German Flower Wholesale and ImportTradeE-mail: [email protected]: http://www.bgi.blumen-worldwide.com

Zentralverband Gartenbau e.V. (ZVG)German growers associationE-mail: [email protected]: http://www.zvg-bonn.de

ITALY

ANCEFAssociazione Nationale Commercianti Exportatori FioriItalian exporters and wholesalers associationE-mail: [email protected]: http://www.ancef.it

THE NETHERLANDS

Hoofdbedrijfschap Agrarische Groothandel (HBAG)Dutch Floricultural Wholesale BoardE-mail: [email protected]: http://www.hbag.nl

Bloemenbureau HollandFlower Council of HollandE-mail: [email protected]: http://www.flowercouncil.org

Productschap TuinbouwProduct Board for HorticultureE-mail: [email protected]: http://www.tuinbouw.nl

Vereniging van Bloemenveilingen in Nederland (VBN) Association of Dutch auctionsE-mail: [email protected]: http://www.vbn.nl

Vereniging van Groothandelaren in BloemkwekerijProducten (VGB)Association of Dutch Wholesalers in floricultural productsE-mail: [email protected]: http://www.vgb.nl

NORWAY

Opplysningskontoret for blomster og planterNorwegian horticultural growers associationE-mail: [email protected]: http://www.obp.no/blomstertips.htm

SWEDEN

Blomster Grossisternas Riksförbund (BGR) Swedish Wholesaler AssociationAddress: Storgatan 63, 36051 Hovmantorp, SwedenTelephone: +46 (0)413 15850Fax: +46 (0)413 60666E-mail: [email protected]

UNITED KINGDOM

Flower Importer Trade Association (FITA)c/o Fresh Life Marketing LtdAddress: Town Mill, Bagshot Rd, Chobham, Surrey

GU24 8BZ, United KingdomTelephone: +44 (0)1276 855655Fax: +44 (0)1276 855882E-mail: [email protected]

The Fresh Produce ConsortiumE-mail: [email protected]: http://www.freshproduce.org.uk

Flower and Plants AssociationE-mail: [email protected]: http://www.flowers.org.uk

2.4 Trade fair organisers

AUSTRIA

IGM International Horticultural Exhibition, cut flowers and plants,horticultural technologyFrequency: annual (28 August - 1 September 2003) E-mail: [email protected]: http://www.tulln.at/messe

DENMARK

DAN-GAR-TEK/DAN-PLANThorticultural technologyFrequency: biennial (August 2004) E-mail: [email protected]: http://www.dan-gar-tek.dk

FRANCE

Salon du Végétalinternational horticultural trade fairFrequency: biennial (18-20 February 2004)E-mail: [email protected]: http://www.salon-du-vegetal.com/

104

Florissimointernational exhibition fair for exotic plants, flowers andfoliageFrequency: every 4 years (11 March 2005 -

20 March 2005) E-mail: [email protected]: http://www.dijon-congrexpo.com

Hortiflorretail-oriented trade fair for cut flowers and pot plantsFrequency: annual (8-10 March 2003)Internet: http://www.hortiflor.org/ or

http://www.idexpo.com/uk/salons/ hortiflor/index.html

GERMANY

IPMinternational trade fair for cut flowers and plants, equipmentand florists’ requisitesFrequency: annual (January / February 2004)E-mail: [email protected]: http://www.ipm-messe.de

GAFA - Internationale GartenfachmesseInternational garden trade fairFrequency: annual (31 August - 2 September 2003)E-mail: [email protected]: http://www.koelnmesse.de

International Green Week (IGW)international exhibition for the food, agricultural, andhorticultural industriesFrequency: 16-25 January 2004E-Mail: [email protected]: http://www.gruenewoche.com

ITALY

Flormart-Miflorflowers, plants, equipmentFrequency: semi-annual (12-14 September 2003,

February 2004) Email: [email protected]: http://www.flormart.it/

THE NETHERLANDS

International Horti FairEquipment, flowers and plantsFrequency: annual (5-8 November 2003)Email: [email protected]: http://www.flowertradeshow.nl or

http://www.hortifair.nl

SPAIN

Iberfloragarden and horticultural technology showFrequency: annual (October 2003)E-mail: [email protected]: http://www.feriavalencia.com/iberflora

UNITED KINGDOM

HorticultureInternational Flower & Plant Trade ExhibitionFrequency: annual (February 2001)Email: [email protected]

Four Oaks Trade ShowFrequency: annual (September 2003)Email: [email protected]: http://www.fouroaks-tradeshow.com/

2.5 Trade press

INTERNATIONAL

“Floraculture International”; “Growertalks”; “Greenprofit” (International floricultural magazine,production and trade, English)E-mail: [email protected]: http://www.growertalks.com

BELGIUM

“Fleurs creatif”; “Espaces Verts”; “Groen” (French and Dutch)E-mail: [email protected]: http://www.rekad.com

FRANCE

“Lien Horticole”(French) E-mail: [email protected]: http://www.hortilien.com

GERMANY

“Gartenbörse”(Magazine for producers and wholesalers, German)E-mail: gartenfundus@freenet

“TASPO”(Floricultural magazine, German)E-mail: [email protected]: http://www.taspo.de/

105

ITALY

“Flortecnica”(Production and marketing of floricultural products, Italian(including summary in English))E-mail: [email protected]: http://www.flortecnica.it

THE NETHERLANDS

“Groot Handelsblad”(Trade journal for the floricultural Wholesalers, Dutch)E-mail: [email protected]: http://www.adequaat.nl

“Vakblad voor de Bloemisterij”(Trade journal for floriculture, Dutch)E-mail: [email protected]: http://www.bloemisterij.ebi.nl

SPAIN

“Horticultura Internacional”; “Horticom”(Horticultural trade magazine, Spanish (including summary inEnglish))E-mail: [email protected]: http://www.horticom.com

UNITED KINGDOM

“International Floriculture Online Report (formerly theQuarterly Report)”(International floricultural wholesale reports, English)E-mail: [email protected]: http://www.pathfastpublishing.com

“Grower” (English)E-mail: [email protected],Internet: http://www.hhc.co.uk/horticulture

2.6 Main European wholesale markets and auctions

BELGIUM

Bloemenveiling AalstAuctionEmail: [email protected]: http://www.flora-veiling.be

EuroveilingAuctionAddress: Oorlogskruisenlaan 1, 1120 Brussels,

BelgiumTelephone: +32 (0)2 2410050Fax: +32 (0)2 2410057

FRANCE

Marché d’Intérêt National de RungisLargest dispatch market in France (near Paris)Internet: http://www.rungisinternational.com

Marché d’Intérêt National de Marseille ProvenceConsumption marketE-mail: [email protected]: http://www.min-arnavaux.enprovence.com

Marché d’Intérêt National de LyonConsumption marketE-mail: [email protected]: http://www.marche-gros-lyon.com/

Marché d’Intérêt National de LilleConsumption marketInternet: http://www.mindelille.fr/E-mail: [email protected]

DENMARK

GASA OdenseAuctionE-mail: [email protected]: http://www.gasa-odense.dk

GASA ÅrhusAuctionE-mail: [email protected]: http://www.gasa-aarhus.dk

GERMANY

NBV-UGANiederrheinische Blumenvermarktung eGAuctionE-mail: [email protected]: http://www.nbv-uga.de

Marktgemeinschaft Blumengrossmarkt Hamburg e.G.Importer of cut flowers and pot plantsE-mail: [email protected]: http://www.blumengrossmarkt-hh.de

Blumengrossmarkt Berlin Wirtschaftgenossensch. e.G.Address: Friedrichstrasse 18, 10961 Berlin,

GermanyTelephone: +49 (0)30 2516026Fax: +49 (0)30 2518795

Blumengrossmarkt München,E-mail: info@ blumengrossmarkt-muenchen.deInternet: http://www.blumengrossmarkt-muenchen.de

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ITALY

Mercato dei Fiori Italian wholesale markets

Allessandria: via St. Michel 19, 15100 Alessandria, ItalyFlorence: via Circondaria 10, 50127 Firenze, ItalyGenova: Piazzale Kennedy, 16129 Genova, ItalyIvrea: via Monte STelephonela, 10015 Ivrea, ItalyLecce: via Provinciale per Taranto, 73100 Lecce, ItalyMilan: via Marco Bruto 17, 20138 Milano, ItalyPadova: via Tommaseo 61, 35161 Padova, ItalyPescia: via Salvo d’Acquisto 6, 51017 Pescia PT, ItalyRome: via Trionfale 45, 00195 Roma, ItalySan Remo: http://www.sanremoflowermarket.com/Taviano: via dante Alighieri 46, 78057 Taviano, ItalyTerlizzi: via Carelli, 70058 Terlizzi, ItalyTorino: via Perugia 29, 10192 Torino, ItalyViareggio: http://www.comune.viareggio.lu.it/

servizi/mercati Vittoria: Contrada Gaspanella, 97019 Vittoria RG, Italy

COMICENT

Centro Commercializzazione Fiori Dell’ Italia CentraleEmail: [email protected]: http://www.comicent.it

THE NETHERLANDS

Bloemenveiling Aalsmeer (VBA)International flower auction in AalsmeerE-mail: [email protected]: http://www.vba.nl

Bloemenveiling FloraHolland International flower auction with 5 branches in Naaldwijk,Rijnsburg, Bleiswijk, Venlo, and EeldeEmail: [email protected]: http://www.floraholland.nl/

NORWAY

A.L. Økern TorvhallWholesale market OsloInternet: http://www.cape-daisy.dk

SPAIN

Mercat de Flor y Planta Ornamental de CatalunyaInternet: http://www.mercatflor.com

MercabarnaE-mail: [email protected]: http://www.mercabarna.es

MercaflorE-mail: [email protected]: http://www.mercavalencia.es

UNITED KINGDOM

New Covent Garden MarketE-mail: [email protected]: http://www.cgma.gov.uk

New Smithfield MarketInternet: http://www.manchester.gov.uk/markets/

newsmith

2.7 Other useful addresses

INTERNATIONAL

International Chamber of CommerceE-mail: [email protected]: http://www.iccwbo.com

Global Crop Protection Federation (GCPF)E-mail: [email protected]: http://www.gcpf.org

EUROPEAN UNION

European CommissionFor ACP countries: DG VIII (General directorate forDevelopment VIII)E-mail: [email protected]: http://europe.eu.int

BELGIUM

Association of European Chambers of Commerce andIndustryE-mail: [email protected]: www.ecu-notes.org/atoz997/eurocham.html

DENMARK

Container CentralenE-mail: [email protected]: http://www.container-centralen.com/cc/uk/

index.html

DanpotE-mail: [email protected]: http://www.danpot.dk

FRANCE

CPVOE-mail: [email protected]: http://www.cpvo.fr

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GERMANY

Federal Statistical OfficeE-mail: [email protected]: http://www.statistik-bund.de

Flower Label ProgrammeE-mail: [email protected]: http://www.flower-label-programm.org

THE NETHERLANDS

ATO-DLO(Research Institute, provides information on post-harvest)E-mail: [email protected]: http://www.ato-dlo.nl

Centrale dienst voor In- en Uitvoer Central Service for Imports and Exports Address: P. O. Box 3003, 9700 RD Groningen,

The NetherlandsTelephone: +31 (0)50 5239111Fax: +31 (0)50 5260698

Chamber of CommerceAssociation of Chambers of Commerce in The NetherlandsAddress: Watermolenlaan 1, 3447 GT Woerden,

The NetherlandsE-mail: [email protected]: http://www.kvk.nl

CITES-bureau in The NetherlandsAddress: Laser Zuidwest, P.O. box 1191,

NL-3300 BD Dordrecht, The NetherlandsTelephone: +31 (0)78 6395341/61 Fax: +31 (0)78 6395350

(for permit applications)

Keuringsdienst van WarenHealth and Safety Standards Inspectorate for HealthProtectionE-mail: [email protected]: http://www.vwa.nl

Milieu Project Sierteelt (MPS)Foundation Floriculture Environmental ProjectE-mail: [email protected]: http://www.st-mps.nl

Plantenziektenkundige dienstPhytosanitary serviceAddress: P.O. box 9012, 6700 HC Wageningen,

The NetherlandsTelephone: +31 (0)317 - 496911Fax: +31 (0)317 - 421701 Internet: http://www.minlnv.nl/pd

Raad voor kwekersrecht (Board for plant breeders’ rights)E-mail: [email protected]: http://www.ago.nl/kwekersrecht

SGS European Quality Certification Institute E.E.S.V.E-mail: [email protected]: http://www.sgs.nl

SKALContact point for SKAL certificationEmail: [email protected]: www.skal.com

SWITZERLAND

CITES SecretariatE-mail: [email protected]: http://www.cites.org /CITES/eng/index.shtml

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Afghanistan Albania Algeria Angola Anguilla Antigua and Barbuda Argentina Armenia Azerbaijan Bahrain Bangladesh Barbados Belize Benin Bhutan Bolivia Bosnia and Herzegovina Botswana Brazil Burkina Faso Burundi Cambodia Cameroon Cape Verde Central African Republic Chad Chile China Colombia Comoros Congo, Democratic Republic Congo, Republic Cook Islands Costa Rica Côte d’Ivoire Croatia Cuba Djibouti Dominica Dominican RepublicEcuador Egypt El Salvador Equatorial Guinea Eritrea Ethiopia Fiji Gabon Gambia Georgia

Ghana Grenada Guatemala Guinea Guinea-Bissau Guyana Haiti Honduras India Indonesia Iran Iraq Jamaica Jordan Kazakstan KenyaKiribati Korea, Democratic People’s Republic Kyrgiz, Republic Laos Lebanon Lesotho Liberia Macedonia Madagascar Malawi Malaysia Maldives Mali Marshall Islands Mauritania Mauritius Mayotte Mexico Micronesia, Federal States Moldova Mongolia Montserrat Morocco Mozambique Myanmar Namibia Nauru Nepal Nicaragua Niger Nigeria Niue Oman Pakistan

Palau IslandsPalestinian Administrated Areas Panama Papua New Guinea Paraguay Peru Philippines RwandaSamoa Sao Tome & Principe Saudi Arabia Senegal Seychelles Sierra Leone Solomon IslandsSomalia South Africa Sri Lanka St. Helena St. Kitts-Nevis St. Lucia St. Vincent And Grenadines Sudan Suriname Swaziland Syria Tajikistan Tanzania Thailand Timor, EastTogo Tokelau Tonga Trinidad & Tobago Tunisia Turkey Turkmenistan Turks & Caicos Islands Tuvalu Uganda Uruguay Uzbekistan Vanuatu Venezuela Vietnam Wallis & Futuna Yemen Yugoslavia, Fed. RepublicZambiaZimbabwe

APPENDIX 3 LIST OF DEVELOPING COUNTRIES

The list of developing countries as applied in this market survey, is the OECD DAC list of countries receiving OfficialDevelopment Assistance (Part I). The list used is the one as at 1/1/2003.

Note: Eurostat figures do not include figures for St. Kitts-Nevis

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4.1 EU quality standards, regulation 316/68

Definition of produceThese standards shall apply to fresh cut flower buds ofa kind suitable for bouquets or for ornamental purposes,falling within subheading no. 06.03 A of theHarmonised Commodity Description and CodingSystem (HS).

Quality requirementsa. Minimum requirementsProduce must have been carefully cut or picked,according to the species, and have reached anappropriate stage of growth.

b. Classification1. Class IProduce in this class must be of good quality. It musthave the characteristics of the species, and whereappropriate, of the variety (cultivar).All parts of the cut flowers must be:• whole;• fresh;• free of animal or vegetable parasites and from

damage caused by such;• free of residues of pesticides and other extraneous

matter affecting the appearance;• unbruised;• free of defects of development; for Dianthus, a split

calyx is not considered a defect of development.However, in respect of American Dianthus, flowers witha split calyx must be ringed, put up separately inuniform lots and the packages marked accordingly. The stems must, according to species and variety(cultivar) be rigid and strong enough to support theflower(s).

2. Class IIThis class shall include all produce which does notmeet all the requirements of Class I.All parts of the cut flowers must be:• whole;• fresh;• free of animal parasites.The flowers may, however, have the following defects:• slight malformation;• slight bruising;• slight damage caused, for example, by disease or by

animal parasites;• weaker, less rigid stems;• small marks caused by treatment with pesticides.The permitted defects must not impair the keepingquality, appearance or utility of the products.

3. Extra ClassProduce which qualifies for Class I without the aid ofany quality tolerance may be marked ‘Extra’. However,this classification may not be used for AmericanDianthus with a split calyx.

Special provisionsThe special provisions for certain types of flowers setout in 9.1.a. shall override provisions of this Appendix.

SizingFor cut flowers, sizing must comply at least with thefollowing scale:

The difference per unit of presentation (bunch, bouquet,box, and the like) between the maximum and minimumlengths of the flowers in the unit may not exceed:• 2.5 centimetres for flowers in codes 15 and below;• 5.0 centimetres for flowers in codes 20 to 50

(inclusive);• 10.0 centimetres for flowers in codes 60 and above.

This difference may be doubled for flowers presented infan shape. For Dendranthema with large flowerspresented in fan shape, this difference may go up to 20centimetres for flowers in codes 20 to 50 (inclusive).The size scale and the uniform lengths set out above arenot applicable to mimosa. The minimum length forbranches of mimosa shall be fixed at 20 centimetres.However, bundles and bouquets composed exclusivelyof small sprigs of a length less than 20 centimetres maybe permitted subject to the words ‘short term’ or anequivalent term being marked on the package.

APPENDIX 4 QUALITY STANDARDS

Code Length

0 less than 5 centimetres or flowers marketed without stems

5 5 - 10 centimetres10 10 - 15 centimetres15 15 - 20 centimetres20 20 - 25 centimetres30 30 - 40 centimetres40 40 - 50 centimetres50 50 - 60 centimetres60 60 - 80 centimetres80 80 -100 centimetres

100 100 - 120 centimetres120 more than 120 centimetres

These lengths include the flower head.

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Quality tolerancesQuality tolerances shall be permitted in each unit ofpresentation as follows:

1. Class IFive per cent of the cut flowers may have slight defects,on condition that the uniformity of the flowers in a unitof presentation is not affected.

2. Class IITen per cent of the cut flowers may vary from therequirements of the class. Half of this percentage mayhave been attacked by parasites of animal or vegetableorigin. The defects in question must not impair theutility of the products.

Packaging and presentationa. Presentation (EU regulations 802/71)‘A unit of presentation (bunch, bouquet, box, and thelike) must consist of 5, 10 or a multiple of 10 pieces.However, this rule does not apply to:1. flowers normally sold singly;2. flowers normally sold by weight;3. flowers for which seller and buyer agree expressly

to derogate from the provisions concerning the number of flowers in a unit of presentation. This derogation is admissible solely for transactions outside wholesale markets on condition that:

• the goods are the subject of a direct sale, based on a fixed selling price per unit of presentation, atwholesale level to a retailer or a person acting on behalf of a retailer;

• the goods are accompanied by a bill, delivery note or similar document showing the above-mentionedselling price;

• the unit of presentation is in the packaging required by the buyer / for the buyer / for the ultimate purchaser.

This packaging must be such as to permit identificationof goods.

b. UniformityEach unit of presentation (bunch, bouquet, box, and thelike), must contain flowers of the same genus, speciesor variety (cultivar) and of the same quality class, andmust have reached the same stage of development.Mixtures of flowers or mixtures of flowers with foliageof different genius, species or variety (cultivar) are,however, permitted so long as products of the samequality class are used and that they are appropriatelymarked.

c. PackagingPackaging must protect the produce adequately. Paper or other materials in direct contact with the cutflowers must be new.

MarkingThe following particulars must accompany the goods:a. Identification:• dispatcher or packer: name and address or code mark.

b. Nature of produce:• genus;• species or variety (cultivar) or colour of flowers;• where appropriate, the word ‘mixture’ (or

equivalent term).

c. Origin of produce (optional):• region or origin, or national, regional or local name.

d. Commercial specifications:• class;• size (length code) or minimum and maximum

lengths (optional);• number or net weight.

e. Official control mark (optional)

f. Presentation (EC regulation 802/71):If the number of flowers per unit of presentationdoes not correspond to the provisions of section9.4.a., packages must be marked to show the exactcomposition of the units of presentation containedtherein.

4.2 VBN Norm Sheet Rosa

The requirements mentioned in this productspecification apply in addition to the GeneralSpecifications for Cut Flowers (see http://www.vbn.nl).

Product specification Rosa (May 2002)

Definition of terms• Bloomable bud: Bloomable, coloured bud in

inflorescence which can be expected to developproperly.

• Flat bud: Flower bud that has been flattened on topand therefore has a deviant shape.

• Grass heart: Vegetative growth in the heart of theflower.

• Rosa Floribunda: Rosa with at least 3 bloomablebuds and/or flowers per branch.

I. Minimum requirements for tradePre treatment• Rosa must be pre-treated and supplied in water with

a pre-treatment agent. Products containing the activeingredient aluminium sulphate and spreading agent(code 3 on the label of the product) must be used andapplied in accordance with instructions.

• The minimum concentration of aluminium in thesupply solution must be 64 ppm.

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Bacteria content• The bacteria content in the stem must be less than 1

million bacteria per gram of stem.• The bacteria content is determined by means of stem

samples.

Ripeness• The minimum ripeness requirement for Rosa is that a

minimum of 95% of the number of stems in a batchmust have a coloured bud whose bracts must becompletely separate from the petal.

II. Quality and grading criteriaQuality requirements par batchThe following additional requirements apply:• The batch must be free of growth defects, including:

– flat buds;– grass hearts;– crooked necks.

The tolerances as shown in Overview 1 in the GeneralSpecifications for Cut Flowers apply.

Grading requirements per batchRosa must be graded according to:• length;• ripeness;• number of bloomable buds.

When grading by length, instead of an allowed 3 cmdifference in length, all Rosa must be bunched so thatthe stems in the bunch are even at the bottom. There isno tolerance in length difference at the bottom of thebunch.

Grade codeThe length grade must be indicated for Rosa. For Rosafloribunda, the length grade and the bloomable budsgrade (under “other”) must be indicated.

III. Packing specifications

GeneralRosa, except Rosa floribunda, must:• be supplied in bunches of 10 or 20 stems;• be packed in foil per container;• be bunched so that the flower buds are all at the

same level or in two layers. When bunching with twolayers, the separate layers may not touch each other.

Rosa floribunda must:• be supplied in bunches of 10 stems;• be packed in foil per container;• be bunched so that the highest placed flower buds

are at the same level.Rosa must be supplied in clean water (containing theprescribed pre-treatment agents).

Rosa must be supplied in clean water (containing theprescribed pre-treatment agents).

Loading• Rosa must be supplied in packaging/containers of

type 533, 544 or 577.• Rosa flowers with stems shorter than 40 cm (length

035) must be supplied in packaging/containers oftype 566; the number of roses per container mustthen be the same as the number prescribed forpackaging/containers of type 533).

Survey 1: number of stems per unit of packaging/container

length large group medium-seized group small group(cm)

100 120 (577) 140 (577) 140 (577)90 120 (577) 140 (577) 140 (577)80 120 (577) 140 (577) 140 (577)

70 140 (577) 200 (544) 160 (577) 200 (544) 200 (544)65 140 (577) 200 (544) 160 (577) 200 (544) 200 (544)60 140 (577) 200 (544) 160 (577) 200 (544) 200 (544)55 140 (577) 200 (544) 160 (577) 200 (544) 200 (544)50 140 (577) 200 (544) 160 (577) 200 (544) 200 (544)

45 200 (533) 240 (533) 280 (533)40 200 (533) 240 (533) 280 (533)35 240 (533) 280 (533) 280 (533)30 240 (533) 280 (533) 280 (533)25 240 (533) 280 (533) 280 (533)

• Rosa, with the exception of spray Rosa, must besupplied according to survey 1, depending on thelength and loading group categories in which the decultivar has been classified according to survey 2.

• The cultivars marked with a * in survey 2 (heaviestroses)belonging to the ‘large’ group may betemporarily loaded with 40 fewer per container.

• Deviations from survey 1 are allowed only with priorpermission from the responsible auction inspector.

• An interim loading guideline can be obtained fromthe auction inspector for any cultivars not included insurvey 2.

The cultivar classification system for classification inthe groups ‘large’, ‘medium sized’ and ‘small’ wasspecifically developed for determining the loading ofroses. No rights can be derived from this classificationoutside loading contexts.

V. AdviceTo prevent the risk of the formation of condensationduring sale you are advised to:• wrap the roses in (entirely or partly) perforated film;• make sure the flowers are not too tightly encased by

sleeves;• use well-fitting film that is not too wide.

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http://www.plantindex.com/European Plant Index: horticultural database in Europe.The guide to plants and horticultural machines inEurope. European growers, traders or horticulturalsuppliers can register here. (Language: French, German,Dutch, Spanish, English and Italian)

http://www.ukexnet.co.uk/The Commercial Horticultural Index Organisations sitegives information about publications, trade shows andhorticultural organisations. (Language: English)

http://www.agriholland.nl/This site gives information about the latest news flasheson the European horticultural market. Among otherpractical information, this Internet site links to Internetsites with price indications. (Language: Dutch)

http://www.vba.com/The internationally oriented flower auction, AalsmeerFlower Auction (VBA), is the centre for internationalproduction and trade in floricultural products. TheInternet site provides general and specific informationon the market for flowers and plants. (Language: Dutch,English)

http://www.ballpublishing.com/Up-to-date information on various magazines likeGrowertalks, Floraculture International, Seed TradeNews and Greenprofit. This site provides summaries oncurrent issues and an article archive. (Language:English)

http://www.flowerweb.nl/This Internet site offers links to various useful nationaland international Internet sites, of traders,importers/exporters but also other organisations.(Language: English, Dutch, German).

http://www.intracen.org/Internet site of ICT with link to MNS Market NewsService. Depending on the product group, the MNSproduct specialist contacts these sources of informationto obtain up-to-the-minute data concerning the actualprices paid for specific products, supply and demandand any other economic information that may have aneffect on the market situation over the next few days.The information collected is then analysed, tabulatedand processed in a computer programme speciallydesigned for each product group and is transmitted toMNS subscribers by airmail, Email or Fax. (Language:English)

http://www.flowercouncil.org The Internet site of the Bloemenbureau Holland

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(Flower Council of Holland) provides information onthe market for floricultural products. The FlowerCouncil, which is the marketing and promotionorganisation for flowers and plants from TheNetherlands, designs and implements marketingprogrammes. One can find information on trends,market segments, floricultural market in EU countriesand programmes.. (Language: English, Dutch)

http://www.floraholland.nl/FloraHolland is market leader in the world.FloraHolland has five locations, being Naaldwijk,Rijnsburg, Bleiswijk, ZON and Eelde. Besides thelocations close to the Dutch production and salesoutlets, FloraHolland has a strong direct salesdepartment that is active at all locations. Their websiteprovides information on the Netherlands auction,buyers and growers. Daily prices and average prices offlowers are also given. (Language: English, Dutch)

http://www.hbag.nl/Internet site of the ‘Hoofdbedrijfschap AgrarischeGroothandel’ gives an overview of data on exports,trading organisation, links etc. (Language: Dutch)

http://www.coleacp.org/Interprofessional Association of exporters, importersand other operators from the ACP-EU industry.COLEACP aims to promote competitive ACP exportsof fresh fruit and vegetables, flowers and ornamentalplants. (Language: French, English)

http://www.snm.agriculture.gouv.fr/This Internet site provides information on price on thevarious auctions in France. (French language)

http://www.minlnv.nl/The Internet site of the Netherlands Ministry ofAgriculture, Nature management and Fishery providesinformation on policy and statistics on agriculture,nature management and fisheries. It also links up toother useful sites in Europe. (Language: English,Dutch)

http://www.agrarischplein.nl/main_akk.html/This site focuses on current affairs and matters, andalso links up to other interesting sites. (Language:Dutch).

http://www.tuinbouw.nl/The Productschap Tuinbouw (PT) is a platform in thehorticultural sector. The Netherlands horticultural sectorconsists of 55,000 small companies. The PT forms theumbrella organisation for the horticulture. The PT siteprovides information about data, new technologies,

APPENDIX 5 USEFUL INTERNET SITES

news flashes, market information, EU information andrestrictions on quality for imports. (Language: Dutch).

http://www.rhs.org.uk/The Royal Horicultural Society gives seasonal advice toproducers and consumers on the Internet. The RoyalSociety also functions as an e-commerce company; thecustomer can order plants on the web. It also providesinformation on flower shows in Europe.(Language:English).

http://www.flowers.org.uk/The Flowers and Plants Association site givesinformation on consumption patterns and trends, latestnews and current innovative technologies. Flowers andPlants is an organisation for cut flowers and indoorplants. (Language: English).

http://www.greenprofit.com/The site provides statistics on consumer buying trends,solid informative industry news, reports on the newfloral and gardening hard and live goods, andmerchandising and display ideas. (Language: English).

http://www.floracultureintl.com/FloraCulture International magazine and site bringnews and information on the worldwidefloriculture industry. The site gives valuable informationon the import/export trade, international growingtechniques, new varieties, and innovative, labor-savingequipment. (Language: English).

http://www.zvg.ivm.de/Web site of the Zentralverband Gartenbau that providesyou with information about trade organisations inGermany. The data entries provide information onproduction, import and exports from Germany to EUcountries. (Language: German)

http://www.ediho.es/horticom/This site provides information on technology, servicesand trade of the international horticultural industry. Onecan find information about horticultural publications,press releases, themes and authors and trade fairs. Italso links up to other useful sites on the web.(Language: English).

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115

APPENDIX 6 MAIN EUROPEAN PUBLIC HOLIDAYS OF IMPORTANCE TO THE FLORICULTURAL TRADE (2004)

date holiday country

January

1 January New Year’s Day B, G, F, GR, UK, L, NL, A, E, H 6 January Feast of the Epiphany GR, A, E, H7 January Ioannis Name Day GR

20 January St. Sebstian’s Name Day E

February

11 February Rosenmontag G14 February St. Valentine’s Day B, G, FI, F, GR, UK, IRE, I, L, NL, A, E, S, Hsecond Sunday in February Mother’s Day N

March

1 March St. David’s Day UK8 March Woman’s Day G, A, E

10 March Mother’s Day UK, IRE17 March St. Patrick’s Day UK, IRE19 March San José’s Name Day E25 March Evangelos Name Day GRfirst Sunday in March Grandmother’s Day B, F

April

4 April Palm Sunday F, P9 April Good Friday G, UK

11 April Easter B, G, F, UK, I, L, NL, A, E, S, H18 April Secretary Day B, F, L, NL23 April San Jorge Name Day GR, UK, E25 April Revolution Day P27 April Nuestra Señora de Monserrat E30 April Queen’s Day NL

May

1 May Labour Day B, G, F, GR, L, N, E, H, P, A, D4 May Commemoration Day NL5 May Liberation Day NL8 May Victoire F

15 May San Isidro E19 May Whitsun, Pentecost B, G, FL, NL, A, H20 May Ascension Day B, G, F, L, A, NL 21 May Constantin and Helena Name Day GR30 May Fronleichnam D, Afirst Sunday in May Mother’s Day E, Lfirst Monday in May May Day UKsecond Sunday in May Mother’s Day G, I, NL, B, DK, A, GRlast Sunday in May Mother’s Day F, S, FI

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June

1 June Graduation FI4 June Spring Bank Holiday UK, IRE5 June National Holiday DK

23 June Midsummer’s eve S21 June Feast of the Music F23 June National Holiday L24 June San Juan Name Day E23 June Midsommar N, D24 June Midsommar FI29 June San Pedro Esecond Sunday in June Father’s Day B, A, G third Sunday in June Father’s Day F, UK, IRE, NL

July

7 July San Fermin E11 July Holiday of the Dutch Cult. Comm. B14 July National Holiday F16 July Carmen Name Day E21 July National Holiday B22 July Holiday in Castellon E25 July Apostol Santiago E26 July Santa Ana E31 July San Ignacio E

August

1 August National Holiday H15 August Assumption B, FI, L, A, P, H, E

September

11 September Diada E12 September Marie’s Name Day UK, I, E14 September Stavros Name Day GR17 September Sofia Name Day GR27 September Holiday of the French Cult. Comm. Bsecond Sunday in June Patient’s Day B, NLthird Saturday in Sept Grandparent’s Day UK, IRE

October

5 October Saint Fleur F6 October Erntedank G

12 October National Holiday E15 October Teresa Name Day E26 October National Holiday A26 October Dimitros Name Day GR28 October National Holiday (Ochi) GRfirst Sunday in Oct Father’s Day L

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November

1 November All Saints’ Day B, G, F, I, L, N, A, P, E, H9 November Almudena E

11 November Armistice B, F15 November Holiday of the German Cult. Comm. B20 November Buss und Bettag G25 November Catherine Name Day F, GR30 November St. Andrew’s Day UKsecond Sunday in Nov Father’s Day FI, N, Sthird Sunday in Nov Grandparent’s Day BLast Sunday before Advent Totensonntag G

December

3 December San Francisco Javier E6 December Nikolas Name Day GR, B, NL6 December Day of the Spanish Constitution E6 December Independence Day F8 December The Immaculate Conception A, E, P, I9 December Anna Name Day GR

25 December Christmas B, G, FI, F, GR, UK, IRE, I, L, NL, A, E, H26 December Christmas B, G, FI, F, GR, UK, IRE, I, L, NL, A, E, H26 December San Esteban E27 December Stefanos Name Day GR31 December New Years’ Eve B, G, FI, F, GR, UK, IRE, I, L, NL, A, E, H, Sfirst Sunday after November 26 Advent G, A, S

B Belgium F France IRE IrelandDK Denmark G Germany I ItalyGR Greece UK United Kingdom L LuxembourgE Spain H Switzerland NL The NetherlandsFI Finland N Norway A AustriaP Portugal S Sweden

CBI: YOUR EUROPEAN PARTNER FOR THE EUROPEAN MARKET

The CBI (Centre for the Promotion of Imports from developing countries) is anagency of the Dutch Ministry of Foreign Affairs. The CBI was established in 1971.The CBI’s mission is to contribute to the economic development of developingcountries by strengthening the competitiveness of companies from these countrieson the EU market. The CBI considers social values and compliance with the mostrelevant environmental requirements to be an integral part of its policy andactivities.

CBI offers various programmes and services to its target groups:

Market information A wide variety of tools to keep exporters and Business Support Organisations(BSOs) in developing countries in step with the very latest development on the EUmarket. These include market surveys and strategic marketing guides for more than 40product groups, manuals on export planning and other topics, fashion and interiorforecasts and the CBI News Bulletin, a bi-monthly magazine. This information canalso be obtained from our website at www.cbi.nl For all information on non-tarifftrade barriers in the EU CBI has a special database, AccessGuide, atwww.cbi.nl/accessguide And finally CBI’s Business Centre is offering free office facilities, includingtelephones, computers, internet and copiers for eligible exporters and BSOs.Market reports, international trade magazines, cd-roms and much more can beconsulted in the information section of the business centre.

Company matching The company matching programme links well-versed suppliers in developingcountries to reliable importing companies in the EU and vice versa. The onlinematching database contains profiles of hundreds of CBI-audited and assistedexporters in developing countries that are ready to enter into various forms ofbusiness relationships with companies in the EU, as well as many EU companiesinterested in importing or other forms of partnerships such as subcontracting orprivate labelling.

Export development programmes (EDPs)EDPs are designed to assist entrepreneurs in developing countries in entering andsucceeding on the EU market and/or in consolidating or expanding their existingmarket share. Selected participants receive individual support over a number ofyears by means of on site consultancy, training schemes, trade fair participation,

business-to-business activities and general export market entry support.Key elements usually include technical assistance in fields such asproduct adaptation, improving production, implementing regulations andstandards and export marketing and management assistance.

Training programmesTraining programmes for exporters and BSOs on, among others, generalexport marketing and management; trade promotion; management ofinternational trade fair participations and developing client-orientedmarket information systems. The duration of the training programmes varybetween two days and two weeks and are organized in Rotterdam or onlocation in developing countries.

BSO development programmeInstitutional support for capacity building for selected business supportorganisations.The programme is tailored to the specific needs of participating BSOs andcan include train-the-trainer assistance, market information systemssupport and staff training. CBI’s role is advisory and facilitative.

Please write to us in English, the working language of the CBI.

Centre for the Promotion of Imports from developing countriesCentrum tot Bevordering van de Import uit de ontwikkelingslanden

Mailing address:CBIP.O. Box 300093001 DA RotterdamPhone +31 (0) 10 201 34 34Fax +31 (0) 10 411 40 81E-mail [email protected] www.cbi.nl

Office:WTC-Beursbuilding, 5th Floor37 Beursplein, Rotterdam, The Netherlands.

No part of this publication may be sold, reproduced in any form or by anymeans without the prior permission of CBI

Mailing address: P.O. Box 30009, 3001 DA Rotterdam, The NetherlandsPhone: +31 10 201 34 34 Fax: +31 10 411 40 81E-mail: [email protected] Internet: http://www.cbi.nl

Office: WTC-Beursbuilding, 5th floor37 Beursplein, Rotterdam, The Netherlands

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